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: Great graphing capabilities

Lesson Specifics

• read a supply schedule and a supply curve
• draw a supply curve from a supply schedule
• read a demand schedule and a demand curve
• construct a demand curve from a demand schedule
• determine the market price from a supply/demand curve
• create a spreadsheet and graph the supply/demand schedules

• the student needs to know the basic concepts of a free enterprise system;
• the student must be able to identify the various economies of the world;
• 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.
• Students may work individually or in pairs for these exercises.
• Reserve computer lab for Explorations in Economic Demand and Supply simulation. (2 days)

Instructional Set

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. What affect does supply or demand have on market price?
2. What are some forces affecting or some determinants of supply and demand?
3. Give an example of a product whose price has been affected by demand? Öby supply?

Teaching Strategies

1. Review marketing data for supply/demand schedules.
2. Demonstrate how to draw a supply/demand curve from the data schedules.
3. Review how to enter data into a spreadsheet and create a table

Supply
Demand
Law of Supply
Law of Demand
Market Price
Consumer
Supply Curve
Demand Curve
Supply and Demand Schedule
Spreadsheet

Practice:

• Students will draw supply and demand curves based on raw data.
• Selected students will verbally explain how market price is determined.
• Students will analyze the affect supply and demand have on market price.
• Students may select a product and draw their own supply/demand chart that represents the popularity of that product.

Assessment: Given a supply and demand schedule, students will draw a supply and demand curve and state the market price.

Enhancements

• Students will enter data in a spreadsheet and produce a graph.
• Explorations in Economic Demand simulation (this activity should take two days)

Extensions