Price and Equilibrium Analysis · SHS2 Economics

Lesson notes

Learning Objectives

Indicator: 2.3.1.LI.2 - Determine the equilibrium output and price in the market.

By the end of the lesson, learners can:

Determine the equilibrium price and quantity by equating the demand function to the supply function.
Calculate equilibrium values using simultaneous equations when given linear demand and supply schedules.
Identify disequilibrium situations (excess demand and excess supply) and compute the size of the surplus or shortage.
Explain how the market restores equilibrium after a disequilibrium situation, using price adjustment reasoning.
Draw and interpret a supply and demand diagram showing the equilibrium point, and shift the curves to predict new equilibrium outcomes.

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Curriculum details

Strand: Price Analysis and Prediction in the Modern Economy (Strand 3)
Sub-strand: Price and Equilibrium Analysis (3.1)
Content standard: 2.3.1.CS.1 - Apply quantitative skills in determining equilibrium. 2.3.1.LO.1 Use the concepts of demand and supply to determine the equilibrium in the market..
Indicator: 2.3.1.LI.2 - Determine the equilibrium output and price in the market.
Suggested placement: Semester 2, Week 3 (Week 23 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. 77

Exemplars (from the NaCCA curriculum)

Building on What Others Say: In mixed ability and gender groups, and based on the knowledge acquired from equilibrium, explain the equilibrium price and quantity in a market. Discuss disequilibrium situations in a market and how equilibrium can be restored.
- Embracing diversity and practice inclusion in various groups
- Respecting individuals of varying beliefs, religion and cultures
Assessment (2.3.1.AS.2). The document marks these depth-of-knowledge levels for this indicator: Level 4 Extended critical thinking and reasoning.
Teaching and Learning Resources:
- Pens
- Exercise books
- Marker
- White board