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: As the economies of countries overlap and the concept of a global economy grows stronger and even more necessary, consequences of varying degrees can occur if a country's economy is "out of balance." Discussions will begin with the economy of a family and progress to a community, region, state, and finally a country.

Advantages of Medium: The Internet offers real-time weather updates that affect supply and demand decisions.

Lesson Specifics

• identify the economic consequences when supply exceeds demand
• identify the economic consequences when demand exceeds supply
• explain how supply and demand affects the marketplace, including the job market

Learning Environment: Classroom setting

Instructional Set

Gaining Attention: Not applicable

Orienting the Lesson: Not applicable

Stimulating Recall of Prerequisites: Not applicable

Key Questions:

1. How can a supply/demand ratio stay balanced?
2. What causes the supply/demand ratio to be out of balance?
3. What could happen if a country's supply/demand ratio stays out of balance?
4. What factors are involved if a product is to stay on the market?

Teaching Strategies

1. Open the discussions with the Tickle Me Elmo cartoon and want ad discussion.
2. Divide students into small groups.
3. Students will brainstorm consequences a community may suffer if they have not properly prepared for a major storm.
4. Each group will report their findings to the class.
5. The teacher should lead a guided discussion with examples of economic consequences in a family, a neighborhood, a community, a region, then state, and finally country.
6. Individually, students will create a list of the five most important items needed for a pending storm.
7. Predict the available supply of each item.

Ratio

Practice: Students will maintain well organized two column notes throughout this lesson.

Assessment: Provide a written response to the key questions.

Enhancements

• Students should investigate weather web sites to track potential storm systems, giving brief scenarios to regulate or invigorate group discussions.
• Plot a hurricane across the Atlantic Ocean or a winter storm across the plains and determine the different levels of preparedness necessary in your community.
• Research your community's long-range plan for economic development and discuss the potential economic and political issues. Invite a member of the city planning council to visit the class and discuss the plan (however, your students must be prepared with questions based on their knowledge of the background information).
• Investigate software that creates planned communities to illustrate the concept of supply and demand. (i.e. SimCity Software)

Extensions