LAW OF DEMAND LESSON PLAN
After completing the lesson plan, have students use the law of demand to complete the demand schedules.
The law of demand is the inverse relationship between demand price and the quantity demanded, ceteris paribus. This fundamental economic principle indicates that as the price of a commodity decrease, then the quantity of the commodity that buyers are able and willing to purchase in a given period of time, if other factors are held constant, increases.
Ceteris paribus is a Latin term that means all other thing being equal. For a demand curve to be accurate the ceteris paribus assumption must be in place. So when there is a change in price there is a movement along the demand curve. This is called a change in quantity demanded. It looks like this:
Lesson Printable Materials -
Print out the teaching lesson pages and
exercise worksheets for
use with this lesson: