SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
OBJECTIVES
By the end of this lesson, the student will be able to:
 Define microeconomics.
 Define market.
 Define the Law of Demand, Demand Schedule, and Demand Curve.
 Illustrate the Demand Curve on a graph.
 Identify the Determinants of Demand.
 Define the Law of Supply, Supply Schedule, and Supply Curve.
 Illustrate Supply Curve on a graph.
 Identify the Determinants of Supply.
 Explain how price influences supply and demand.
 Describe Equilibrium, Equilibrium Schedule, and Equilibrium Curve.
 On a graph, illustrate how supply and demand determine equilibrium price and quantity.
 Explain how price floor and price ceiling impact equilibrium prices?
CLASSROOM SUPPLIES NEEDED
Depending on what content and which activities are provided, some to all of the items below will be needed.
 Whiteboard and dry erase markers or flipchart paper and markers
 A sheet of graph paper for each student
 A pencil for each student
LESSON RESOURCES
Depending on what content and which activities are provided, some to all of the items below will be needed.
Pre-Work for Students to Read Before Class
 Handout 1- The Role of Choice in Economics
Pre-Work for Students to View Before Class
n/a
Handouts to Provide Students in Class
 Handout 2 - Schedules: Demand, Supply and Equilibrium
Economics > Microeconomics > Supply and Demand
Page 1
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
 Handout 3 - Determinants of Demand and Supply
Online Videos Students Will Watch In Class
n/a
KEY VOCABULARY AND IMPORTANT CONCEPTS
 Microeconomics
 Demand Schedule
 Law of Supply
 Price
 Individual Choice
 Demand Curve
 Supply Schedule
 Equilibrium
 Market
 Determinants of
 Supply Curve
 Equilibrium Schedule
 Determinants of
 Equilibrium Curve
 Demand
 Law of Demand
Demand
 Supply
Supply
 Price Floor
 Price Ceiling
STUDENT PRE-WORK FOR THIS LESSON
Directions
1. Students will read the handout.
2. Students are to be prepared to discuss the concepts included in both handouts.
Resource
 Handout 1- The Role of Choice in Economics
Class Preparation
During the next class, teacher will lead students in a discussion of the handout to draw out information
covered in the reading assignment.
Economics > Microeconomics > Supply and Demand
Page 2
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
ANTICIPATORY SET FOR THE LESSON (5 MINUTES)
Mode
Class Discussion
Topic
Describe a situation when you went to purchase something that was just too
expensive. What did you do?
Students’ answers will vary.
Teacher explains to students that this scenario represents demand, and how
their decisions could affect supply.
LESSON CONTENT AND ACTIVITIES: MICROECONOMICS: STUDY OF CHOICES THAT INDIVIDUALS AND
BUSINESS MAKE (5 MINUTES)
Mode
Class Discussion
Topic
Define Microeconomics
Teacher and students define microeconomics, and identify some of the topics
studied in this field of economics.
Teacher and Students
Review Handout
Individual Choice
Teacher asks students to review information in Handout 1-The Role of Choice
in Economics. Students read this handout for pre-work.
Teacher and students define the concept of individual choice.
Teacher and students discuss the factors that influence individual choice.
Teacher Lecture
Class Discussion
Markets
Teacher and students review the definition of market and explain how buyers
and sellers interact in the marketplace.
Teacher asks students to give some examples of markets.
Students’ answers can include the Stock Market, the Farmer’s Market, the
grocery store, and online shopping sites, like Amazon.
Economics > Microeconomics > Supply and Demand
Page 3
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: DEMAND AND THE LAW OF DEMAND (15 MINUTES)
Mode
Teacher Lecture
Class Discussion
Topic
Demand and Law of Demand
Teacher and students define demand.
Teacher asks students to give examples of demand.
Students’ answers could include the following information:
Demand refers to goods or services that the consumer is willing to buy at a
certain price. (clothes, cars, houses, food, lawn care, and maid service).
Teacher defines Law of Demand.
Teacher Gives
Students Handout
Demand Schedule
Teacher Provides
Instructions
Teacher instructs students to look at (Figure 1).
Teacher gives students a copy of the Handout 2-Schedules: Demand, Supply
and Equilibrium.
Teacher and students discuss the components of the schedule.
NOTE***Handout 2-Schedules: Demand, Supply and Equilibrium, contains the
schedules that students will use to graph data for the Demand Curve, Supply
Curve, and the Equilibrium Curve.
Demand Curve
Teacher instructs students to use graph paper to plot the data from the
Demand Schedule.
Teacher reminds students that the numbers for price are placed on the “Y”
axis, and the numbers for quantity are placed on the x axis.
Teacher may need to demonstrate how to graph two items.
Student Activity
Students plot the numbers from the Demand Schedule on the graph.
Teacher instructs students to connect the data points.
Teacher tells students that the line is the Demand Curve.
Teacher Checks for
Understanding
Teacher generates discussion about the Demand Curve by asking:
“How much quantity will the consumer buy if items are priced at $10.00? “
125.
“How much would they be willing to buy if the price was $25.00?”
Economics > Microeconomics > Supply and Demand
Page 4
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: DEMAND AND THE LAW OF DEMAND (15 MINUTES)
Mode
Topic
50.
Teacher asks students,” What happened to the price?”
It increased.
Teacher asks students “What happened to the quantity purchased?”
It decreased.
Teacher asks students to explain how this Demand Curve illustrates the Law of
Demand.
Students’ answers should include the following information:
Consumers want to buy the largest quantity of items at the lowest price.
When the price of the item is the lowest — $5.00, the quantity purchased is
the highest at 150 items. When the price of the item is the highest — $25.00,
the quantity purchased is the lowest at 50.
Teacher Lecture
Class Discussion
Determinants of Demand
Teacher students identify the factors that determine whether or not
consumers will buy an item.
LESSON CONTENT AND ACTIVITIES: SUPPLY AND THE LAW OF SUPPLY (20 MINUTES)
Mode
Teacher Lecture
Class Discussion
Topic
Supply / Law of Supply
Teacher and students define supply.
Teacher asks students to give examples of supply.
Students’ answers should include the following information:
Supply refers to goods and services that a producer manufactures, or provides,
at a certain price. (clothes, cars, houses, food, lawn care, and maid service).
Teacher defines Law of Supply.
Teacher asks students to explain how the Law of Supply differs from the Law
of Demand.
Students’ answers should indicate that they understand that the Law of Supply
Economics > Microeconomics > Supply and Demand
Page 5
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: SUPPLY AND THE LAW OF SUPPLY (20 MINUTES)
Mode
Topic
says the producers, or sellers want to sell the largest quantity of items at the
highest price. Consumers, or buyers want to buy the largest quantity of items
at the lowest price. The motives of buyers and sellers do not match.
Teacher Provides
Instructions
Supply Schedule
Teacher tells students that Figure 2 on Handout 2 -Schedules: Demand, Supply
and Equilibrium, is the Supply Schedule, and it contains the data for the Supply
Curve. Teacher and students discuss the components of the schedule.
Supply Curve
Teacher instructs students to plot data from the Supply Schedule on a graph.
Teacher instructs students to connect the data points.
Teacher tells students that the line is the Supply Curve.
Student Activity
Teacher Checks for
Understanding
Students plot data from supply schedule in graph.
Teacher generates discussion about the Supply Curve and asks the following
questions:
How much quantity is the producer willing to sell if items are priced at $10.00?
75.
How much would he/she be willing to sell if the price was $25.00? “
150.
Teacher asks students, “What happened to the price?”
It increased.
“What happened to the quantity the producer is willing to sell?”
It increased.
“What does the Supply Curve reveal about the producers in the market? “
Students’ answers should reflect definition of Law of Supply.
Producers want to sell the largest quantity of items at the highest price. In the
previous example, the quantity of items supplied, increased as the price
increased.
Teacher Lecture
Class Discussion
Determinants of Supply
Economics > Microeconomics > Supply and Demand
Page 6
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: SUPPLY AND THE LAW OF SUPPLY (20 MINUTES)
Mode
Topic
Teachers and students discuss the factors that determine whether or not a
producer is willing to produce and sell items at a certain price.
Teacher Provides
Instructions
Teacher gives students a copy of Handout 3 - Determinants of Demand and
Supply, and explains the information on the handout.
Teacher instructs students to read and follow the instructions on the handout.
Student Activity
The chart contains news article headlines. Read the following headlines, and
in the section labeled Demand or Supply, indicate whether the activity
described is an example of demand or supply. In the next section, labeled
Increases or Decreases, indicate whether the action described, increases or
decreases demand or supply.
Students complete the chart. Students answers should include the following
information:
Demand/Supply for Cotton .T-Shirts
News Article Headlines
Demand or
Supply
Increases or
Decreases
Sales of Polyester T-Shirts
Outpace Cotton T-Shirts by
50 Percent Compared to
Previous Year.
Demand
Decreases
Boll Weevil Destroys Cotton
Crop.
Supply
Decreases
Local Department Store
Reports
Demand
Increases
Supply
Decreases
Best Sales Figures for Cotton
T-Shirts in Two Years.
World Trade Organization
Requests That U. S.
Decrease Subsidies to
American Cotton Producers.
Economics > Microeconomics > Supply and Demand
Page 7
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: SUPPLY AND THE LAW OF SUPPLY (20 MINUTES)
Mode
Topic
U. S. Complies.
Cotton Gin of the 21st
Century: New Technology
Revolutionizes Cotton
Production.
Supply
Increases
LESSON CONTENT AND ACTIVITIES: PRICE PROVIDES INFORMATION (5 MINUTES)
Mode
Teacher Lecture
Class Discussion
Topic
Price Influences Supply and Demand
Teacher and students discuss the influence of price on the quantity of an item
that producers are willing to supply, and the quantity of an item that
consumers are willing to purchase.
LESSON CONTENT AND ACTIVITIES: EQUILIBRIUM BRINGS BUYERS AND SELLERS TOGETHER (15 MINUTES)
Mode
Class Discussion
Topic
Equilibrium
Teacher and students discuss the meaning of equilibrium in the market place.
Teacher Provides
Instructions
Equilibrium Schedule
Teacher instructs students to look at Figure 3 on Handout 2-Schedules:
Demand, Supply, and Equilibrium.
Teacher and students discuss the components of the schedule.
Equilibrium Curve
Student Activity
Teacher instructs students to plot the data from the Equilibrium Schedule on a
graph.
Students plot data from equilibrium schedule on graph
Teacher instructs students to connect the data points.
Teacher tells students that the place where both lines intersect is the
Economics > Microeconomics > Supply and Demand
Page 8
SOCIAL STUDIES LESSON PLAN RESOURCES
SOCIAL STUDIES CLASS
Economics
TOPIC
Microeconomics and Macroeconomics
LESSON 4
Supply and Demand
LESSON CONTENT AND ACTIVITIES: EQUILIBRIUM BRINGS BUYERS AND SELLERS TOGETHER (15 MINUTES)
Mode
Teacher Checks for
Understanding
Topic
equilibrium price point.
Teacher asks students to explain what the equilibrium price means in the
marketplace. Students’ answers should include the following information:
The equilibrium price point means that the producer is willing to sell an item at
the same price that a consumer is willing to purchase it.
Teacher Lecture
Class Discussion
Price Floor and Price Ceiling
Teacher defines price floor and price ceiling, and explains how both impact the
equilibrium price.
LESSON ASSESSMENT AND STUDENT LEARNING EVALUATION (5 MINUTES)
Mode
Discussion
Topic
Explain the statement: “Equilibrium price clears the market”
http://economics.about.com/od/helpforeconomicsstudents/f/inflation.htm
The Equilibrium price is the price at which producers are willing to sell, and
consumers are willing to buy. The goods or services should sell out.
Economics > Microeconomics > Supply and Demand
Page 9