Law of Demand
Unit 2 · Lesson 2.2 · Last updated June 2026
A 45-minute lesson where students use data from the Coffee Market Simulation to graph the demand curve, learn the law of demand, and apply it to real-world scenarios — from Nutella chaos to Air Jordans.
Overview
In this lesson, students use data from the Coffee Market Simulation (Lesson 2.1) to start learning about the product market model. Students will learn about the law of demand and will practice illustrating changes in quantity demanded.
Learning Objective
- Explain the relationship between price and quantity demanded.
Materials
- Instruction Slides (display during class period)
- Student Handout pp. 4–7 (1 copy per student)
- Retrieval Practice p. 8 (1 copy per student)
- KEY Retrieval Practice p. 9 (1 copy for educator use)
Lesson Sequence
Slides 2–4
- Display Slide 2. Distribute 1 copy of Student Handout. Direct students to discuss the activator questions with 1 or 2 classmates using the supply and demand schedules from their handout. Debrief as a class (use the supply and demand schedule on Slide 3 as needed). (Additional educator tips and suggested answers are in the notes section throughout Instruction Slides.)
- Proceed to Slide 4 and introduce the learning objectives for the lesson.
Slides 5–35
- Proceed through Slide 5 and use Slides 6–8 to graph the supply and demand schedule data from the Coffee Market Simulation (Lesson 2.1). Click to reveal plot points and definitions. As you demonstrate the steps and define key terms, students create the model on Student Handout.
- Progress through Slides 10–11 to define key terms. After Slide 11, instruct students to answer questions 1 and 2 on Student Handout. Remind students that the supply curve will be discussed further in future lessons.
- Display Slide 12. Tell students to answer question 3 on Student Handout.
- Proceed to Slide 13. Introduce the law of demand using information on the slide and the graph and data from the classroom simulation.
- Advance to Slide 14. Students generate their own example that illustrates the law of demand using the stem statements on the slide. Tell students to share their examples with a peer and then call on volunteers to share with the class. Direct students to complete question 4 on Student Handout.
- Display Slide 15. Use a student example to reinforce the movement along the demand curve based on the law of demand.
- Progress through Slides 16–20 to clarify areas of common confusion (labeling, graphing the independent variable on the y-axis, curves vs. lines, why curves often do not intersect axes, solid lines vs. dotted lines). Students may add notes to the "Graphing Tips & Tricks" section of Student Handout.
- Proceed to Slide 21. Acknowledge that this is the first step of graphing and that students will add more to their graphs as Unit 2 continues (adding shifts of the demand curve, relevant arrows, new equilibrium points, etc.).
- Progress through Slides 22–23. Use Nutella Chaos to illustrate the law of demand. Introduce the product, its popularity in France, and the dramatic price change. Tell students to predict how people responded to the price change.
- Advance to Slide 24, which includes a short video clip about a real-world example of the law of demand. Tell students to consider the question on the slide as they watch. Play the video.
- Display Slide 25. Click to reveal the correct response. Alert students to the stumbling block (as indicated by the yellow warning graphic): it is important that students refer to a change in "quantity demanded," not "demand." This is a common area of confusion, and developing precision now will make things clearer in the future.
- Proceed to Slide 26. Inform students that they will attempt a practice problem. Allow students 1 minute to discuss the example on the slide in groups of 2 or 3.
- Display Slide 27. Guide students through the graphing of the Air Jordan 1 example. Note: Explain to students that for now they will not worry about why the price changed — they should focus on the fact that the price did change. Tell students to answer question 5 on Student Handout.
- Advance to Slide 28. Students complete the "Reflection" questions (6 and 7) on Student Handout.
- Progress through Slides 29–30. Working in groups of 2 or 3, students complete practice problems 1–4 on Student Handout. After 8 minutes, reveal the answers to each problem (Slides 31–34) and explain the solutions.
- Display Slide 35. Give students 1 minute to complete "Reflection Part 2" (questions 5 and 6) on Student Handout. Tell students to put away Student Handout prior to the summarizer section.
Slides 36–37
- Advance through Slides 36–37. Distribute Retrieval Practice to each student. Students complete Retrieval Practice individually and submit their work by the end of class or finish it as homework. Reinforce that this is a no-stakes, formative assessment to help determine if learning objectives were met and what common areas of confusion exist.
- Collect Retrieval Practice. Reference KEY Retrieval Practice when determining common misconceptions and/or gaps in student understanding.
Aligned Standards
Voluntary National Content Standards in Economics
Standard 4 Markets
What Educators Are Saying
The slides and demand scenarios (AirPods, sneakers) were relatable.
High School Economics Teacher, Virginia
Easy to understand and the ability to give the students a notes sheet means they spend more time interacting with the material than just writing notes. There is a lot of practice embedded throughout the lesson. I have also never taught law of demand and demand shifts separate — this seemed to help them grasp the concept that price changes don't change overall demand.
High School Economics Teacher, Alabama
I liked how everything was broken down for students. It helps students understand the concept much better than my more traditional methods.
High School Economics Teacher, South Carolina