SUPPLY AND DEMAND LESSON PLAN
The laws of supply and demand explain how the market determines the price and quantity of goods to be sold. Supply refers to the quantity of a certain good or service that is available for people to purchase. Demand refers to the number of people who are willing and able buy that good or service at a certain price.
1. Give each student a grant of between 4 and 10 MoneyInstructor-Bucks (MIB). Just as in real life, some people will have fewer resources than others. Although the grants will be randomly distributed, the breakdown should look something like this:
4 MIB - 3 grants
5 MIB – 4 grants
6 MIB – 5 grants
7 MIB – 5 grants
8 MIB – 4 grants
9 MIB - 2 grants
10 MIB – 1 grant
*Divide up the MIB before the lesson so that it can be distributed quickly.
2. Tell students that you will auction off two different items today. In each of the two auctions, the item will go to the highest bidder. Tell the students your behavioral expectations for the auction process. Tell students that if they do not win anything today, they will be able to keep their MoneyInstructor-bucks grant.
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