Economics · Lesson Plan
Demand and Marginal Utility
Why is the second slice of pizza never quite as good as the first? This lesson uses a candy simulation to show diminishing marginal utility — each additional unit gives less added enjoyment — and connects it to the demand curve. Students explore the factors that shift demand (tastes, income, expectations, related goods, number of buyers) and apply them to a real news example, with an assessment and answer key.
For Teachers
Lesson at a glance
- Topic
- Economics
- Grade Level
- Grades 9–12
- Resource Type
- Lesson + Worksheet
- Estimated Time
- 45–60 minutes
- Format
- Lesson + worksheet + answer key
- Materials
- Printable lesson, worksheet, whiteboard
What Students Learn
Learning objectives
- Define marginal utility and diminishing marginal utility
- Explain how marginal utility relates to the demand curve
- Identify the factors that shift demand
- Explain why a non-buyer isn’t part of demand
- Apply the factors of demand to a real-world example
Materials
What you’ll need
- Printed lesson, article, assessment, and answer key (one per student)
- A bag of candy for the simulation
- Graph paper
- Pencils
Key Terms
Vocabulary
- Marginal utility
- The added satisfaction from one more unit of a good.
- Diminishing marginal utility
- Each extra unit adds less satisfaction than the last.
- Demand
- Being willing and able to buy a good at a given price.
- Substitute
- A good bought instead of another when its price rises.
- Complement
- A good used together with another (like gas and SUVs).
- Demand shifter
- A factor (tastes, income, expectations, etc.) that changes demand.
For Teachers
Lesson plan
Estimated time: one 45–60 minute class period.
Lesson sequence
- Candy simulation (15 min). Volunteers rate their enjoyment as they receive each piece of candy; the class records the data and charts marginal utility.
- Connect to demand (10 min). Discuss how falling marginal utility shapes demand, and why a non-buyer isn’t counted.
- Factors that shift demand (12 min). Tastes, income, expectations, related goods, and number of buyers, with examples.
- Article & assessment (18 min). Students read the demand example and answer the five assessment questions.
Assessment
Assess the completed assessment against the included answer key.
Discussion
Discussion questions
- What is diminishing marginal utility?
- How does marginal utility relate to demand?
- Why isn’t someone who won’t buy a good part of its demand?
- What are some factors that can shift demand?
- How can the price of a complement (like gas) change demand for another good?
Printable Lesson, Worksheet & Answer Key
Demand and Marginal Utility — Lesson, Worksheet & Answer Key
A printable lesson with a candy marginal-utility simulation, the factors that shift demand, an applied assessment, and an answer key.
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