Consumer Behaviour · SHS3 Economics

Lesson notes

Learning Objectives

Indicator: 3.1.3.LI.1 - Explain Substitution and Income Effects in Utility.

By the end of the lesson, learners can:

Define substitution effect and income effect in their own words using everyday examples from their lives.
Distinguish between the substitution effect and the income effect when given a scenario involving a price change.
Explain how a fall in the price of a good affects a consumer’s real income and purchasing power.
Use a real-life Ghanaian example to describe how both effects operate simultaneously when a price changes.
Present their understanding of income and substitution effects in a mixed-gender group using Microsoft PowerPoint.

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Curriculum details

Strand: Consumers' Rational Decision Making (Strand 1)
Sub-strand: Consumer Behaviour (1.3)
Content standard: 3.1.3.CS.1 - Demonstrate knowledge and understanding of Substitution and Income Effects. 3.1.3.LO.1 Use information from the environment to explain income and substitution effects.
Indicator: 3.1.3.LI.1 - Explain Substitution and Income Effects in Utility.
Suggested placement: Semester 1, Week 4 (Week 4 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.
Source document note: The official curriculum document has a fault in this entry, so the curriculum text above is transcribed exactly as printed:

content standard text - p.95 the document prints the content-standard code as "3.1.3.CS1", with no separator before the final digit
content standard text - p.93 the document prints the learning-outcome code as "3.1.3.LO1", with no separator before the final digit
Curriculum reference: NaCCA curriculum document, p. 95

Exemplars (from the NaCCA curriculum)

Collaboration Learning: In a mixed gender and ability groups, discuss the concepts of substitution and income effects using your daily life experiences as students and present your group work using PowerPoint. Through collaboration, learners learn to be gender responsive and have the ability to tackle injustice. Learners learn to accept and tolerate one another irrespective of their background.
Assessment (3.1.3.AS.1). The document marks these depth-of-knowledge levels for this indicator: Level 3 Strategic reasoning.
Teaching and Learning Resources:
- Marker
- White board
- White board
- Microsoft Power Point
- Computers
- Projector