Lesson Notes By Weeks and Term - Senior Secondary 2

Price control and legislation

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Term: 1st Term

Week: 6

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Economics

Topic:-       Price control and legislation

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Define price control and legislation
  2. List and explain the types of price control policy
  3. Discuss the objectives of price control policy
  4. Define rationing system and black market
  5. State the effects of maximum and minimum price control policy

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on price determination

Students pay attention

STEP 2

EXPLANATION

She defines price control and legislation. She also lists and explains the types of price control policy and the objectives of price control policy

Students pay attention and participates

STEP 3

DEMONSTRATION

She defines rationing system and black market. She further states the effects of maximum and minimum price control policy

Students pay attention and participate

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

PRICE CONTROL/LEGISLATION

This is when the government or its agency fixes the price of important goods and services in order to protect buyers and sellers.

TYPES OF PRICE CONTROL POLICY

  1. Minimum Price Legislation: This is the lowest price fixed by the government by which the specified goods and services cannot be sold or bought. In agricultural sector, the government makes laws of fixed prices or gives price floor to protect farmers against fall in their income.
  2. Maximum Price Legislation: It is a price set by the government above which the specified goods and services cannot be sold or bought. It is set to protect the consumers and to control inflation.

OBJECTIVES OF PRICE CONTROL POLICY

1) To control inflation in the economy

2) To control exploitation on consumers by producers

3) To plan for the future

4) To sustain income stability for producers

5) To assist low income earners

6) To stabilize price of commodities

7) To manipulate profit of monopolist

RATIONING SYSTEM

This is a system in which a maximum quantity of a commodity which can be bought is assigned to every consumer.

 

BLACK MARKET

This is an arrangement in which scarce commodities are sold secretly to consumer but at a price higher than the fixed price by the state.

 

EFFECTS OF MAXIMUM PRICE CONTROL POLICY

1) It leads to black market

2) It promote hoarding of commodities

3) Income of producers whose products price are controlled will fall

4) It promote excess demand for goods and services

5) Producers may sell only to regular customers.

 

EFFECTS OF MINIMUM PRICING CONTROL

1) It leads to excess supply

2) It discourages the consumption of the commodity whose price is so fixed 3) commodity. It results in wastage of resources from low patronage of the 4) It increases the demand for substitutes of the commodity whose price is so fixed.

 

EVALUATION:    1. Define price control and legislation

  1. List and explain the types of price control policy
  2. State five objectives of price control policy
  3. Define rationing system and black market
  4. Enumerate two effects of
  5. maximum price control policy
  6. minimum pricing control

 

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively