Lesson #12:
During this class students will explore the fundamental concepts of supply and demand. Students will come to understand how all prices, be they related to the cost of goods or services, the cost of borrowing money, or the cost of labour, are all established through the interplay between the forces of supply and demand.
Students will gain a rudimentary understanding of how the equilibrium price will shift in response to a change in supply, or a change in demand.
At the conclusion of the class, students should have gained an understanding of the following theories and concepts:
Evaluation:
Students will first produce a spreadsheet entirely based on data which is provided.
Once the first spreadsheet is completed, students will produce another spreadsheet based on data which they gather independently. Students will survey their classmates regarding the product/service they are considering for their independent business simulation. Each student will ask ten of their classmates whether they would be willing to purchase their good/service at a variety of different prices. Once the students have gathered this data, they will construct a graph illustrating the demand for their good or service.
Resources:
Relevant web sites: