Lesson Plan #3


Title of Lesson: Supply and demand

Subject Area: Economics

Grade Level: 4th grade

Objective:
* Students will be able to list as a group economic goods, economic bads, items that are scarce in our society and factors that affect our economy.
* Students will be able to answer questions on the worksheet dealing with supply and demand with at least 80% accuracy.

Materials Needed:
Vocabulary words, four pieces of paper taped to different corners of the classroom, four colored pens, and the worksheet.

Procedures:
1. Students will be introduced to some of the basic vocabulary surrounding supply and demand.
Market- a place or service that allows buyers and sellers to exchange goods and services
Demand- the quantity of a good or service that consumers are willing and able to buy at a given price during a specific period of time
Law of demand- as the price of a good decreases, people buy more
Supply- the quantity of a good or service that producers are willing and able to offer at each possible price during a specific period of time
Law of supply- as the price of a good increases, producers will offer more
Economic good- an economic good refers to goods and services
Economic bad- any item for which we would pay to have less of
Scarcity- there is not enough of that item to satisfy everyone who wants it
Equilibrium- the point at which the quantity demanded equals the quantity supplied at a particular price
Surplus- at prices above the equilibrium price the quantity supplied is greater than the quantity demanded
Shortage- at prices below the equilibrium price the quantity demanded is greater than the quantity supplied
2. Teacher will discuss with the students what causes prices to change.
Price may change when demand, supply, or both change. An increase in demand cause prices to increase. An increase in supply cause prices to decrease. If demand and supply both increase but the demand change is larger, price will increase: it will act as if the only change had been a change in demand. If demand and supply both increase but the supply change is larger, price will decrease: it will act as if the only change had been a change in supply. Ex. Suppose the government allowed a certain amount of imported steel to enter the economy. This would cut down on supply and result in a higher steel price. Also, if there was a decrease in potato prices it would suggest an increase in quantity demanded and a decrease in quantity supplied.
3. Teacher will arrange students into four corners by counting off 1-4. There will be a piece of paper in each corner and each group will have two-three minutes to list as many answers as they can in the time allotted. They will rotate clockwise until they have been to all four corners. Each group will have a different colored pen so it is easy to see what group wrote down what answers. They must have answers that are different from the other groups. It might be necessary to increase the time after rotating a couple of rounds to four-five minutes because it will be harder to come up with answers.
4. The first corner will be asked to identify economic goods (food, bicycles, haircuts.) The second corner will identify economic bads (air pollution, garbage, disease.) Third corner will identify things that are scarce (gold, silver, Elmo doll during Christmas of 1996.) The last corner will list different factors that affect our economy (jobs available, wages.)
5. After the students have attended the corners then the last group will look at all the answers and identify the top five responses they like most. They will select a spokesperson from their group to share and explain their responses to the class. The teacher will ask questions to get a better idea of their understanding and then tie the activity together and summarize it. Teacher will ask questions such as: What makes it an economic good? Why does this particular response affect the changing economy? How do you tell if it is an economic good or bad?
Then teacher will add any additional comments and ask students if they have questions or comments to make before moving on to the next activity.
6. The teacher will give the students a worksheet to test their knowledge and understanding of the material discussed in class.
7. Teacher will give the students enough time to complete worksheet. Then they will correct their papers and go through the answers as a class to make sure everyone understands why they are answered in that manner.
8. Teacher will conclude the lesson in reviewing the vocabulary that was introduced at the beginning of the lesson and ask the students to verbally summarize what supply and demand is and how it affects the consumer.

Evaluation:
Teacher will observe the answers given by the four groups to make sure their responses match the question asked. I will have the students grade, then correct their worksheets and I will require that they receive at least 80%.

Lesson

Lesson Plan 4

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Supply and Demand Worksheet

Match each item correctly. Write the letter in the blank.

_____1. Needs (B)

_____2. Wants (E)

_____3. Goods (D)

_____4. Services (A)

_____5. Market (C)

A. Works that are performed for someone.

B. Basic requirements for survival.

C. Location or other mechanism that allows buyers to exchange economic products

D. Means of expressing needs

E. Tangible commodities

6. Which of the following is not an economic good? (A)
A. Weather
B. Car
C. Sandwich
D. Haircut

7. Which of the following is an economic bad? (B)
A. Candy
B. Pollution
C. Television
D. Magazine

8. Which of the following is an example of a service? (C)
A. Blow dryer
B. Scissors
C. T.V. repair person
D. Money

9. When supply is greater than demand than it is called a: (B)
A. Shortage
B. Surplus
C. Variable
D. Balance

10. If the quantity demanded equals the quantity supplied it is called: (D)
A. Economic Approach
B. Law of Demand
C. Law of Supply
D. Equilibrium