Lesson Plan

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Lesson Plan
Grade: Date: 17/01/2026
Subject: Economics
Lesson Topic: meaning of an indifference curve and a budget line
Learning Objective/s:
  • Describe what an indifference curve represents and list its key properties.
  • Define the budget line, write its equation, and interpret its slope and intercepts.
  • Analyse how changes in income or prices shift the budget line.
  • Apply the consumer‑equilibrium condition by equating MRS to the price ratio to determine the optimal consumption bundle.
Materials Needed:
  • Projector or interactive whiteboard
  • Slides with diagrams of indifference curves and budget lines
  • Graph paper and rulers for student sketching
  • Worksheet with practice equations and shift scenarios
  • Calculator (optional)
  • Whiteboard markers
 Introduction:
Begin with a quick poll: “If you had $10 to spend on pizza and movies, how would you decide what to buy?” This links the topic to everyday budgeting and activates prior knowledge of trade‑offs. Explain that today they will explore how economists represent preferences and purchasing power using indifference curves and budget lines, and outline the success criteria: students will be able to draw, interpret, and use these tools to find the optimal bundle.
Lesson Structure:
  1. Do‑now (5'): Students complete a short “budget allocation” task on a sheet; teacher circulates to check understanding.
  2. Mini‑lecture (10'): Introduce indifference curves, key properties, and MRS with a diagram using the projector.
  3. Guided practice (10'): Learners sketch a set of indifference curves on graph paper and label their properties.
  4. Mini‑lecture (10'): Present the budget line equation, intercepts, slope, and how income/price changes shift it; show the shift table.
  5. Paired activity (15'): Given different income and price scenarios, students draw the new budget line, identify the type of shift, and discuss implications.
  6. Consumer‑equilibrium demo (10'): Teacher solves a sample problem showing tangency; students verify steps on their worksheet.
Conclusion:
Summarise that indifference curves capture consumer preferences while the budget line captures purchasing power, and that equilibrium occurs where the two are tangent. For the exit ticket, ask each student to write one real‑life example of a budget constraint and the corresponding indifference curve. Homework: complete the worksheet solving two consumer‑equilibrium problems with varying incomes and prices.