SHS2 Economics · Semester 1 Week 7: Consumer Behaviour

Lesson notes

Learning Objectives

Indicator: 2.1.3.LI.1 - Use the concept of utility to determine the equilibrium of a consumer

By the end of the lesson, learners can:

Define utility, total utility, marginal utility, and consumer equilibrium in their own words with accurate examples.
Calculate marginal utility from a given schedule of total utility using the formula MU = TU₂ - TU₁.
Apply the equilibrium condition (MU = P) to determine the quantity of a good a consumer will purchase at a given price.
Explain, using a simple numerical example, why a consumer maximises satisfaction when marginal utility equals price, and not before or after that point.
Evaluate a given consumption scenario and identify whether the consumer is at equilibrium, over-consuming, or under-consuming relative to the price.

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Curriculum details

Strand: Consumers' Rational Decision Making (Strand 1)
Sub-strand: Consumer Behaviour (1.3)
Content standard: 2.1.3.CS.1 - Apply knowledge in utility concept as a rational consumer. 2.1.3.LO.1 Exhibit rational behaviour in determining the equilibrium in consumption of goods and services through practical experiences.
Indicator: 2.1.3.LI.1 - Use the concept of utility to determine the equilibrium of a consumer
Suggested placement: Semester 1, Week 7 (Week 7 of the year)
Our suggestion, laid out in curriculum order across three terms of twelve weeks. NaCCA does not fix the week, so follow your school's scheme of learning.
Curriculum reference: NaCCA curriculum document, p. 65

Exemplars (from the NaCCA curriculum)

Structuring Talk for Learning: Discuss how equilibrium is attained by equating marginal utility to price. Give more time to learners approaching proficiency.
- Tolerance and respect for each other
- Confidence and efficacy in their ability to perform
Assessment (2.1.3.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 3 Strategic reasoning.
Teaching and Learning Resources:
- Pencil
- Pens
- Eraser
- Ruler
- Exercise books
- Markers
- White boards
- Microsoft Excel
- Computer