CP Economics
Unit 4: Microeconomics-Supply and Demand
Standards:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
c. Define price elasticity of demand and supply.
Day 1:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
d. Explain how prices serve as incentives in a market economy
EQ: How does the interaction of buyers and sellers create the forces of supply and demand in a
market economy?
Focus Question: What is the law of demand, and how is it graphically represented?
1. Warm Up: Put an obscure picture of a cow on the SmartBoard. Ask students to raise their
hands if they know what they are seeing. Allow students to ask “yes” or “no” questions
about the picture. Then ask the students to raise their hands if they know what they are
seeing. Next, outline the cow. Ask students to raise their hands if they know what they are
seeing. Finally, have students discuss their understanding of the picture with a partner.
Now ask how many people understand what they see.
2. Tell students that while this picture is not economics, it can tell us a lot about seeing and
understanding economic models. Some people see and understand the models immediately,
whereas it takes others a while. However, once you “see the cow” you will always be able to
“see the cow.” Also emphasize the importance of helping each other “see the cow.” Everyone
was able to see the cow by the time they were helped by a peer. Teaching someone else does
not just benefit the student. Studies show you remember about 90% of what you teach.
3. Segue into Supply and Demand. Have students T/P/S on what they think of when they hear the
phrase “Supply and Demand.” Explain to students that to economists, supply and demand are
very specific models that explain how competitive markets work.
4. Focus on Demand: We are going to do a quick exercise in demand. Tell class you are selling a
year-long problem set pass. How many students would buy it for $100? $75? $50? $25? Etc.
Plot class data in a demand schedule. Have students examine the data to derive Law of
Demand. Discuss reasons for Law of Demand.
5. Model plotting data in curve. Discuss characteristics of a demand curve.
6. Student paired practice: Reading a demand curve. (Access via online classroom.) Go over
practice.
7. Closing: Lesson Recap and Socrative Exit Ticket.
Day 2:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
d. Explain how prices serve as incentives in a market economy
EQ: How does the interaction of buyers and sellers create the forces of supply and demand in a
market economy?
Focus Question: What is the law of supply and how is it graphically represented?
1. Warm Up: Give students demand schedule data with questions on Smart Board. Have them
work in pairs to review the characteristics of a demand curve. Go over questions.
2. Tell students that today we will focus on the supply curve.
3. Tell them, that you need help this Saturday babysitting your two kids. Ask them to look at the
circular flow to determine which market we are working in. Who is the supplier? Ask a student:
How many hours would you work for $5 per hour? $10 per hour? $15? $20? $25? $30? Plot the
data in a supply schedule. Have students derive Law of Supply using data. Discuss reasons for
the Law of Supply. Model plotting data in curve. Discuss characteristics of supply curve.
4. Student paired practice; Reading a supply curve. (Students access via online classroom). Go
over practice as a class.
5. Closing: Lesson recap and Socrative Exit Ticket
Day 3:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
EQ: How does the interaction of buyers and sellers create the forces of supply and demand in a
market economy?
Focus Question: How do buyers and sellers work together to determine prices in a market economy?
1.
Warm Up: What kinds of prices are incentives for buyers, based on the Law of Demand? What
kinds of prices are incentives for sellers? What problem do you see? Students will work in pairs
to answer the questions. Discuss as a class.
2. Oil Market Simulation: Divide students into two groups. Students will either be buyers or
sellers of barrels of oil. Students will each receive a card with a price for a barrel of oil that they
cannot go either above or below. Students will negotiate over and over in three different timed
rounds. The seller must report the price to the teacher each time a sale is made. In addition,
students will record their profits/losses for each round At the end of each round we will
examine the price data. Eventually,,, by the third round, we should start to see the prices
clump.
3. Allow students to determine who was the most profitable.
4. Closing/Debrief: How do buyers and sellers reach a market price in a competitive market?
What do you notice about the data from round to round? Lead students to the idea of an
equilibrium price between buyers and sellers.
Day 4:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
EQ: How does the interaction of buyers and sellers create the forces of supply and demand in a
market economy?
Focus Questions: 1) When is a market in equilibrium? 2)When is a market in disequilibrium? 3)
Distinguish between the two types of disequilibrium.
1. Warm Up: When students come in, have a demand schedule and a supply schedule on the
board. Have students graph both schedules in the same grid.
2. Ask students: What do you see happening when this data is graphed in the same space?
Students should immediately recognize that they intersect. Ask students: How might this relate
to our activity from the previous day? Students should relate it to the tendency for prices to
clump toward the middle of the price range.
3. Explain to students that this point is what we call “market equilibrium”, also known as the
“market-clearing price.” Ask students, what is the market clearing price and the market
clearing quantity. Allow students to respond and discuss how that information was located.
4. Draw students’ attention to prices above and below the market clearing price. Ask students to
describe what is going on at these prices. Lead students to call these areas “disequilibrium.”
5. Explain to students that there are two types of disequilibrium: surplus and shortage.
6. Before starting practice, use Socrative to gauge student certainty on concepts. Use data to pair
students during practice.
7. Have students work in elbow buddies to determine which area represents shortage and which
area represents surplus. Have students explain how they knew.
8. Practice: Students will work in pairs reading and examining market supply and demand graphs,
and answering questions about the graphs. Go over as a class.
9. Closing: Lesson Recap and Socrative Exit Ticket
Day 5:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
EQ: How does the interaction of buyers and sellers create the forces of supply and demand in a
market economy?
1. Warm Up: Students pick up index cards. Draw a competitive market in equilibrium. Shade and
label areas of shortage and surplus. Share with partner once done and compare.
2. Review Law of Demand, Law of Supply, and Equilibrium as a class.
3. Quiz. Data from this quiz will be used to place students in differentiated pairs.
4. Closing: Review quiz answers as a class.
Day 6 (and 7 for 2014. Want to change this for 2015)
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How does government involvement in a market interfere with market efficiency?
Focus Question: What is a price floor, and what type of disequilibrium does it create?
1. Warm up: Student draw following scenario. Assume the market for milk is in equilibrium at $4.00
per gallon, with a total 10 million gallons sold per week. Due to pressure from dairy farmers who
feel their business will go under due to rising costs and too much competition, farmers are asking
for government to set a minimum $6 price.
2. Show students picture of what their model should look like. Allow them time to correct it.
3. Ask students to discuss what is happening in milk market. Guide them to understand that this is a
government-created disequilibrium in the market known as a price floor. Define/ explain.
4. In pairs, have students determine what type of disequilibrium is being created. Have a student
volunteer to show how they know which type of disequilibrium is occurring.
5. Discuss reasons for a price floor. Have students come up with other types of price floors. Share and
discuss.
6. Turn to partners and explain: Why are price floors located above equilibrium? Let students work
together and ask for volunteers to explain.
7. Socrative Question Review
1. Price floors are set (above/below) equilibrium.
2. Price floors create (shortages/surpluses).
3. Price floors are intended to (raise/lower)prices.
4. Price floors tend to benefit (producers/consumers).
5. Price floors are a (minimum/maximum) price.
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Student draw following scenario. Assume the market for milk is in equilibrium at $4.00 per gallon,
with a total 10 million gallons sold per week. Many people feel this is too high of a price for such an
essential diet stable, and begin pushing politicians to set a maximum price of $3/gallon.
Show students picture of what their model should look like. Allow them time to correct it.
Ask students to discuss what is happening in milk market. Guide them to understand that this is a
government-created disequilibrium in the market known as a price ceiling. Define/ explain.
In pairs, have students determine what type of disequilibrium is being created. Have a student
volunteer to show how they know which type of disequilibrium is occurring.
Discuss reasons for a price ceiling. Have students come up with other types of price ceilings. Share
and discuss.
Turn to partners and explain: Why are price ceilings located below equilibrium? Let students work
together and ask for volunteers to explain.
Closing: Lesson Recap and Socrative Question Review
1. Price ceilings are set (above/below) equilibrium.
2. Price ceilings create (shortages/surpluses).
3. Price ceilings are intended to (raise/lower)prices.
4. Price ceilings tend to benefit (producers/consumers).
5. Price ceilings are a (minimum/maximum) price.
Day 8:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How does government involvement in a market interfere with market efficiency?
Focus Question: How can I distinguish between a price floor and a price ceiling?
1. Warm Up: Warm Up: A politician is proposing a minimum wage of $50,000 per year
2. Tell students that today they will get practice in distinguishing between price floors and price
ceilings.
3. NearPod activity: Series of questions and case studies to practice the difference between price
floors and price ceilings. Teacher will circulate.
*For struggling students, pair them with a study buddy.
*For advanced students, pull them aside and introduce concept of consumer and producer
surplus.
4. When students finish Nearpod activity, students will begin minimum wage investigation. Have
explanation for investigation on page on online classroom.
5. Closing: Review requirements for the next day’s Socratic Seminar.
Day 8:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
b. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How does government involvement in a market interfere with market efficiency?
Focus Question: How is the minimum wage a price floor? Do the benefits of having a minimum
wage outweigh the costs?
1. Warm Up: Poll of student position on raising the minimum wage.
2. Class discussion: Should we have a minimum wage? Should we raise the minimum wage?
3. Closing: Socrative open ended question: Briefly explain your position on the minimum wage.
Use examples from today to support your position.
Day 9:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How do buyers and sellers work together to create the forces of supply and demand in a free
market? How does government interference in the market affect efficiency?
1. Warm Up: Shortage or surplus activity
2. Kahoot Review questions
3. Group Study Guide Work. When students finish the study guide, they may check their answers
with class answer sheet.
4. Closing: Ask for any major questions that students may have before test.
Day 10:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How do buyers and sellers work together to create the forces of supply and demand in a free
market? How does government interference in the market affect efficiency?
1. Warm Up: 5 minute word splash and model review
2. Test
3. After test, students will be given a test poll to complete on Schoology. The poll will assess
student feelings about the test.
4. Closing: When all students finish test, go over any major questions the students had.
Day 11:
SSEMI2 The student will explain how the Law of Demand, the Law of Supply, prices, and profits
work to determine production and distribution in a market economy.
a. Define the Law of Supply and the Law of Demand.
b. Describe the role of buyers and sellers in determining market clearing price.
c. Illustrate on a graph how supply and demand determine equilibrium price and quantity.
d. Explain how prices serve as incentives in a market economy.
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Explain and illustrate on a graph how price floors create surpluses and price ceilings create
shortages.
EQ: How do buyers and sellers work together to create the forces of supply and demand in a free
market? How does government interference in the market affect efficiency?
1. Warm Up: Test Data analysis
2. Test Corrections
3. As students finish, they can assist other students, read and answer questions on an enrichment
article, or work on earning Schoology badges.
Day 12:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
Focus Questions: Why might consumers change their purchasing habits? How do we reflect those
changes on a demand curve?
1. Warm Up: Other than a change in price, what could cause you to buy more or less Coca-Cola?
Students brainstorm and share ideas.
2. Explain to students that when price changes, we simply move along the demand curve.
However, when something OTHER than price changes, we will change the entire demand curve.
3. Example 1: Let’s assume that a new study came out that said Coca-Cola helps you to get high
SAT scores. Put up an original demand schedule. How might these numbers in the demand
schedule change? Students discuss. How will this change our graph? Graph it out with
students. Explain that what has happened here is that demand has increased at all prices.
When this happens, the demand curve will shift to the right.
4. Example 2: Let’s assume that a new study comes out that says Coca-Cola has slightly negative
effects on IQ scores. Put up original demand schedule. How might these numbers in the
demand schedule change? Students discuss. How will this change our graph? Graph it out with
students. Explain that what has happened here is that demand has decreased at all prices.
When this happens, the demand curve will shift to the left.
5. Introduce IRDL as a way to remember shift direction.
6. Introduce TRIBE as a way framework to understand demand shifts.
7. Student practice: Give students a set of problems that require them to look at models and data.
They must decide if demand is increasing, decreasing, or not changing (i.e. only a change in
quantity demanded.)
8. Go over student practice.
9. Closing: Lesson Recap and Socrative Exit Ticket
Day 13:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
Focus Questions: Why might consumers change their purchasing habits? How do we reflect those
changes on a demand curve?
1. Warm Up: Give students three scenarios. What will happen to the demand curve in each
scenario?
2. Students work in pairs to practice analyzing demand shift situations.
3. Go over situations.
4. Closing: Lesson Recap and Socrative Quick Check Questions
Day 14:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
Focus Questions: Why might suppliers change their production habits? How do we reflect those changes
on a supply curve?
1. Warm Up: Change in Demand or Change in Quantity Demanded practice.
2. Tell students that, just like the demand curve, factors other than price can cause the entire
supply curve to shift.
3. Give students data set 1. Have students create their own data to show an increase in supply.
Discuss why this data would show an increase in supply. Graph it out together. Discuss what
happened to the supply curve. Help students see that when the supply increased, the supply
curve shifted to the right.
4. Give students data set 2. Have students create their own data to show a decrease in supply.
Discuss why this data would show a decrease in supply. Graph it out together. Discuss what
happened to the supply curve. Help students see that when the supply decreased, the supply
curve shifted to the left.
5. Remind students of IRDL as a tool to help remember shifting direction.
6. Introduce TIPTEN as a way to differentiate between supply and demand shifts.
7. Student practice: Give students a set of problems that require them to look at models and data.
They must decide if demand is increasing, decreasing, or not changing (i.e. only a change in
quantity demanded.)
8. Go over student practice.
9. Closing: Lesson Recap and Socrative Exit Ticket
Day 15:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: Give students three scenarios. What will happen to the supply curve in each
scenario? Go over as a class.
2. Students work in pairs to practice analyzing supply shift situations.
3. Go over situations.
4. Closing: Lesson Recap and Socrative Quick Check Questions
Day 16:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: Change in Supply or Change in Quantity Supplied practice
2. Supply and Demand Shifting Problems.
a. Put students in pairs.
b. Give students a set of 16 shifting problems. Students must decide whether to shift
supply or to shift demand, show the shift, and show the impact on price and
quantity.
c. Once they finish four questions, pairs can send one partner to check work. Partner
who checked the work goes back and shares any changes.
3. Closing: Fist to Five (How well can you distinguish between a supply or demand shift?)
Day 17:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: Give students three scenarios. Students must decide if the supply or demand
curve shifts, and if so, which way. Discuss.
2. Introduce shifting project:
a. Put students into pairs based on performance so far on shifting.
b. Students must find two current events that are shifting the supply or demand curve
in a market. Students must describe the event, show the shift, explain what
happens to price and quantity. Finally, students must discuss possible implications
of the event, extending beyond the immediate effects.
c. Next, students must think of a shift in a market that would affect their lives. They
must describe the scenario, shift the curve, and describe how the change would
affect them.
3. Allow students time to find current events.
4. Closing: Fist to Five (How well do you understand the project?
Day 18:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: (Tailored for questions arising about budget project.) Problem on how do I find
what percentage an expenditure is of my budget?
2. Students will continue to work on their shifting project today and will submit the project at
the end of class.
3. Closing: Fist to Five (How well do you feel about recognizing shifts in supply and demand.
Day 19:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: Give students three scenarios. Students must decide whether supply or demand
shifts, and if so, which way. Discuss.
2. Demand and Supply Shift Nearpod activity 1.
a. Using Nearpod, give six shifting questions to students. Students will be required to
do the following:
i. Take the headline and market and draw the shift that would occur.
ii. Examine the shift shown and determine which headline could have shifted
the curve in this manner.
iii. Given a scenario, what will happen to price and quantity?
b. As students complete problems share correct answers. Discuss the step-by-step
process of HOW to figure these types of questions out.
3. Closing: Review Key Ways of Distinguishing between a supply shift and a demand shift.
Day 20:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
EQ: How do buyers and sellers create the forces of supply and demand in a market economy?
1. Warm Up: Give students a market graph with a shift. Students must come up with three
scenarios that would shift the curve in the direction shown. Use Today’s Meet.
2. Kahoot! Review
3. Supply and Demand Quiz
a. Early Finishers can look over study guide.
4. Closing: Go over quiz.
Day 22:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
c. Define price elasticity of demand and supply.
EQ: How can we measure a consumer or producer’s response to a change in price?
1. Warm Up: US History connected shifting problems. Go over as a group. Use Today’s Meet.
2. Quiz Results- Hand back quizzes. Discuss tutoring times.
3. Using Smart Notebook, deliver an interactive presentation on elasticity.
a. Definition of elasticity?
b. Measurement of elasticity?
c. Why does elasticity matter?
4. Lesson Summary
5. Give students a set of questions via Socrative. Use the Socrative data to pair students who need
support.
6. Allow students to practice elasticity questions.
7. Closing: Go over problematic questions. End with Fist to Five.
Day 21:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
c. Define price elasticity of demand and supply.
EQ: How can we measure a consumer or producer’s response to a change in price?
1. Warm Up: Set of problems in which students decide whether demand is elastic or inelastic.
2. Based on warm up, place students in one of three groups for added elasticity of demand
practice. Group A: Review of basics, Group B: Basics and a slightly more difficult problem,
Group C: Higher-level analysis
3. Explain to students that in addition to the elasticity of demand, we can also examine the
elasticity of supply.
4. Show student graphic organizer. Discuss and complete organizer.
5. Give students the following problem: Assume that the city of Atlanta just found out that they
will host the 2015 Super Bowl in January. Obviously, during the week of the Super Bowl,
demand for various things like hotels, restaurant meals, and taxi rides will increase. Suppliers
will be able to charge slightly more. In response, suppliers will want to provide more of these
services at a higher price (recall the Law of Supply). For which of these will suppliers be able to
respond most easily to the increase in price?
a. Hotel rooms
b. Taxi rides
6. Let students reason through the elasticity problem. Circulate and discuss drawing a
generalization about the elasticity of supply: The more complex the product, the more inelastic
the supply.
7. Sorting whole group activity: For which products is supply elastic? Inelastic?
8. Lesson Summary
9. Closing: Fist to Five (How well do you understand elasticity?)
Day 22:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
c. Define price elasticity of demand and supply.
1. Warm Up: Have students make a list of the top five things they need to be able to do for their
test.
2. Give students a set of 15 sample test problems. Students will work in pairs. As they finish five,
they may check their answers.
3. Closing: Discuss as a whole group any questions that were highly difficult for students. Discuss
strategies for taking the test.
Day 23:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
c. Define price elasticity of demand and supply.
Students will take a test on supply/demand shifts and elasticity.
Day 24:
SSEMI3 The student will explain how markets, prices, and competition influence economic
behavior.
a. Identify and illustrate on a graph factors that cause changes in market supply and demand.
c. Define price elasticity of demand and supply.
Test Corrections