Economics · Grade 11

Active learning ideas

The Law of Demand

Active learning works well for this topic because the law of demand is about observable human behavior. Students need to test their own assumptions about price changes and consumer choices through real-world examples and collaborative reasoning. Movement and discussion help solidify abstract concepts like the income and substitution effects.

• Ontario Curriculum Expectations
• ON: The Individual and the Economy - Grade 11
• ON: Market Interactions - Grade 11

• 15–40 min
• Pairs → Whole Class
• 3 activities

Activity 01

• Think-Pair-Share
• 15 min · Pairs

Think-Pair-Share: The Coffee Switch

Students discuss what they would do if the price of their favorite drink doubled. They identify if they would buy less (Law of Demand) or switch to a substitute, then share their reasoning with the class.

Explain why consumers buy more at lower prices.

Facilitation Tip

During 'The Coffee Switch,' circulate to listen for students to mention both the substitution effect (switching to tea when coffee becomes expensive) and the income effect (feeling poorer when prices rise).

What to look for

Present students with a scenario: 'The price of coffee at Tim Hortons drops from $2.50 to $1.75 per cup. What is likely to happen to the number of cups of coffee sold?' Ask students to write down their prediction and one reason based on the law of demand.

• Understand
• Apply
• Analyze
• Self-Awareness
• Relationship Skills

Activity 02

• Inquiry Circle
• 40 min · Small Groups

Inquiry Circle: Demand Shifters

Groups are given a product like 'Electric Vehicles' or 'Vinyl Records.' They must research and present three real-world factors that have recently shifted the demand for that product in Canada.

Analyze the income and substitution effects on consumer behavior.

Facilitation Tip

In 'Demand Shifters,' provide colored markers to visually group factors like consumer tastes, income levels, and related goods on large posters.

What to look for

Pose the question: 'Imagine the price of your favorite video game console suddenly doubles. How might the income effect and the substitution effect influence your decision to buy it?' Facilitate a class discussion where students share their individual analyses.

• Analyze
• Evaluate
• Create
• Self-Management
• Self-Awareness

Activity 03

• Simulation Game
• 30 min · Whole Class

Simulation Game: The Auction Room

Conduct a silent auction for a popular item. Record how many students are willing to pay at various price points to create a real-time demand schedule and curve on the whiteboard.

Predict how a change in price will affect quantity demanded for a specific good.

Facilitation Tip

In 'The Auction Room,' assign roles such as 'bidder,' 'observer,' and 'recorder' to ensure every student participates in the simulation of price changes.

What to look for

Provide students with a list of goods (e.g., gasoline, luxury watches, instant noodles, concert tickets). Ask them to classify each as a normal good or an inferior good and briefly explain their reasoning for one of the choices.

• Apply
• Analyze
• Evaluate
• Create
• Social Awareness
• Decision-Making

A few notes on teaching this unit

Teachers often start with relatable examples, like coffee or video games, to ground the concept in student experience. Avoid rushing through the difference between movement along a curve and a shift in the curve, as this is a common stumbling block. Research suggests using repeated, low-stakes practice with real-world scenarios helps students internalize the law of demand more effectively than lectures alone.

Students will confidently explain how price changes cause movement along a demand curve and how non-price factors shift the entire curve. They will use the substitution and income effects to analyze consumer decisions in small-group discussions and simulations. Clear diagrams and verbal justifications will show their understanding of these economic principles.

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Watch Out for These Misconceptions

• During 'The Coffee Switch,' watch for students who say a price change shifts the demand curve.

  Remind students to draw two separate curves on the whiteboard: one for the original price and one for the new price, then label the movement along the curve as a change in quantity demanded.

• During 'Demand Shifters,' watch for students who confuse demand with personal desire.

  Have students sort items into 'things I want' and 'things I can afford and want' before placing them into normal or inferior good categories during the activity.

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Methods used in this brief

• Think-Pair-Share
• Inquiry Circle
• Simulation Game