General Information

Subject Area: Social Studies/Economics

SOL 7.6 - Virginia Standards of Learning

The Students will explain the structure and operation of the United States economy as compared with other economies, with emphasis on:

• the basic concepts of free market, as described by Adam Smith, and of communism, as described by Karl Marx;
• the concepts of supply and demand, scarcity, choices, trade-offs, private ownership, incentives, consumer sovereignty, markets, and competition;
• private and public financial institutions
• the economic impact of consumption, saving and investment, and borrowing by individuals, firms and governments; and
• the differences between free market, centrally planned, and mixed economies.

Lesson Topic: Supply and Demand

Descriptive Overview: The concept of supply and demand permeates every facet of the free enterprise system. It was the driving force that brought America into the 20th century and was the essential economic ingredient as the United States reached world power status. In today's global economy, major economic changes in one country can send ripple effects around the globe. Understanding this concept also helps to understand the different market systems of the world and how they relate to one another

Advantages of Medium: Students will gain valuable knowledge of supply and demand by visiting web sites.

Lesson Specifics

• define the terms supply and demand
• identify the forces affecting supply and demand.
• list the determinants of supply and demand.
• restate the law of supply and the law of demand.

• the student needs to know and understand the basic concept of a free enterprise system;
• the student must be able to identify the various economies of the world;
• the student must know how the factors of production and the circular flow of economic activity affect a free enterprise system;
• the student must have a basic knowledge of graphing;
• the student must have conversation knowledge of the unit terminology and vocabulary.

Learning Environment: Standard classroom with overhead viewer for the Power Point presentation.

Instructional Set

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. How does the supply or demand for goods and services affect your community?
2. What factors are important in determining where a retail business should be built?
3. What factors are necessary in deciding what stores shall be in a shopping mall?

Teaching Strategies

1. Define Supply and Demand.
2. Review the Laws of Supply and Demand.
3. Students can also brainstorm the determinants of supply and of demand.
4. Review and discuss the effect that a country's political and economic system has on the concept of supply and demand.
5. Research and discuss significant historical, political, and economic events in a timeline of 20th century American economic activity
6. Search for current evidence with the Beanie Babies phenomena

Free Enterprise
Supply
Demand
Law of Supply
Law of Demand
Factors of Production
Determinants
Retail

Practice: Students will maintain two column notes of definitions and examples given.

Assessment: Classroom discussion on the concepts of Supply and Demand.

Enhancements

• Read the story about Joey Econ and complete the assessment questions.
• Search the Internet for supply and demand links.

Extensions