Friday October 24, 2014
Mr. Goblirsch – Economics
OBJECTIVE – Students Will Be Able To – SWBAT:
- Simulate negotiations in the marketplace.
AGENDA:
1)
2)
3)
WARM-UP: Tax Day
SIMULATION: Market Equilibrium
Go Over Supply Quiz
*****HW: Examples of Shortage & Surplus DUE TODAY*****
Tax Day WARM-UP: (Follow the directions below)
***5 minutes***
 Take out your Weekly Time Sheet.
 Calculate your tax deduction.
 STEP 1: Gross Pay (Total of Weekly Pay) X Tax % = Amount of Taxes
 STEP 2: Gross Pay (Total of Weekly Pay) – Amount of Taxes = Net Pay (Weekly Deposit)
 Make your weekly deposit in your Account.
Market Equilibrium Simulation
PROMPT:
• In this simulation, you
and your peers will meet
as PIZZA producers and
consumers. You will
meet in the market to
agree on an exchange of
PIZZA at a certain price.
STEPS:
• 2 Groups: Consumers &
Producers
• CONSUMERS: Draw a $
card = Max willing to pay
• PRODUCERS: Draw a $
card = Cost of producing
• 3 Trading Periods: You
can buy one PIZZA each
trading period
• GOAL: To get the best
deal possible
PIZZA SIMULATION
• TRADING PERIOD 1
– NAME:
– PRICE:
• TRADING PERIOD 2
– NAME:
– PRICE
• TRADING PERIOD 3
– NAME:
– PRICE:
MY $ ___
TRANSACTION CHART
Trading
Period 1
# Deals Made
# of Customers
unable to buy
# of Producers
unable to sell
Average price
Lowest Price
Highest Price
Trading
Period 2
Trading
Period 3
$5 $6 $7 $8 $9
$10 $11 $12 $13 $14
$15 $5 $10 $15 $7
$10 $11 $12 $13 $8
$3 $4 $5 $6 $7
$8 $9 $10 $11 $12
$3 $4 $5 $6 $7
$8 $9 $10 $11 $12
THE DOW STOCK SIMULATION
DIRECTIONS From Week 1:
WEEK 2
IF YOU WANT TO KEEP YOUR STOCKS,  Update your 2nd
THE PRICE & SHARES DO NOT CHANGE
Quarter stock sheet for
ON YOUR NEW STOCK SHEET
Week 2.
IF YOU WANT TO CHANGE YOUR STOCKS:
 Take out your 2nd
• You have your $$$ to invest in the stock market.
Quarter stock sheet.
***You cannot spend over what you have
 Calculate your stock
left***
values for Week 2.
• Select 5 stocks from The Dow Jones Industrial
 Multiply # of shares
Average to invest your money in.
X New Price = Total
• How many shares you buy of each stock is up to
Worth
you.
• Multiply the # of shares you want by the Last
trade amount to calculate the Total Worth of that
stock.
– # shares X Last Trade $ = Total Worth