Supply meets Demand at Equilibrium with a Price: Uncovering Supply and Demand

Introduction

Good Afternoon grade 10

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Welcome: Supply meets Demand at Equilibrium with a Price: Uncovering Supply and Demand
Description: Supply and Demand is one of the most basic concepts of economics. This WebQuest will allow students to understand the concepts of Supply and Demand by designing, pricing, marketing, and selling a product of their own. They will also learn about self-regulation by exploring how wants and needs, in addition to supply and demand, affect the price in a market economy.20120402071048abeJe.jpg

Have you ever wondered why Apple decided to sell their iPad for R7000? Why does an Aston Martin cost about R2 046 000 and a Toyota corolla cost about R210 000? Why did the price of a flat screen television drop significantly since it was first introduced in the market? Who decides the price of a product and how?

The price of goods and services are explained through the laws of supply and demand, which are one of the most important concepts of economics. They can be used to explain how producers decide on the price for their product and why consumers are willing to pay that price. In the free competitive market, prices determine how much the producers are willing to supply and the consumers are willing to purchase.

This lesson will help you to understand more about the concepts of supply, demand, equilibrium, and price. You will also learn what causes a shift in supply and demand of a product and how it affects the price. You will then utilize what you have learned on this WebQuest, and design a product that you will sell to your peers. You will demonstrate your understanding of the laws of supply and demand by being a successful producer.

Task

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You will be working in groups of 4.

 

Step 1. Each group member must read and understand the laws of Supply and Demand. You must also understand the concepts of self-regulation, equilibrium, surplus, and shortage by utilizing the resources on the process page.

Step 2. As a group, you will design a product that you would like to produce and sell to your peers. You can either choose to design and compete with a product thats already in the market, or design a product that hasnt been yet invented. Ensure that there is an actual demand of the product you would like to design by conducting surveys.

Step 3. Use the Internet to research and conduct surveys to determine the demand of your product. Use the data from your research and surveys along with what you have learned about supply, demand, wants, and needs on this WebQuest to determine the price of your product.

Step 4. Market your product by presenting it to the class, and persuading your targeted consumer, your peers, why they should purchase your product. Make sure that everyone in your group is involved in the presentation.

Step 5. Sell your product to your peers. Remember that each student is given a limited amount of money to spend on what they can purchase. Therefore, utilize the concept of wants and needs, along with supply and demand, to generate the most revenue and profit.

Step 6. Write a self evaluation by answering the following questions: What worked and what didn't? What would you do differently next time when you work with a group? How would you rate your own performance? What are four things you have learned about Supply and Demand? What do you think would happen if Apple (manufacturer of Apple products, for example, iPhone, iTouch, and iPad) was to drop their iPad price to R4200 tomorrow? What do you think would cause Apple to change the price of their iPad?

Process

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These resources will help you to understand the concept of supply and demand. In addition, some of the resources will aid you in understanding how the price of goods and services is determined. You do not need to use any additional resources for the group activity other than the ones that are on this WebQuest. Therefore, please utilize all of the resources that are available on this WebQuest. They all have something different to offer! 

 

I recommend for you to use resources 1, 2, and 3 for introduction and basic concepts of supply and demand.

Use resources 3 and 7 to understand how the price is affected.

Use 4 and 5 to understand how different determinants affect the supply and demand curve.

Use number 6 to get an additional in-depth knowledge of supply, demand, equilibirum, price elasticity of demand, and opportunity cost.

Use 9 and 10 to test your knowledge, and 11 to help you with designing your own product. 

Web Link

Web Link

 Economic forces of Supply and Demand
 

 Clip from The Hudsucker Proxy

Description: This video clip from the film the Hudsucker Proxy exhibits how prices interact with demand for goods and services.

Evaluation

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You will be evaluated on 4 specific areas.

 

Grades will be assigned as follows: Excellent = 4
                                                               Good = 3
                                                               Average = 2
                                                               Poor = 1 

 

# Poor Average Good Excellent Score
Group Presentation The presentation lacked organization and had little evidence of preparation. Presentation displayed poor research and product design. The presentation showed some signs of organization and preparation. Presentation displayed some research and a good product design. The presentation showed good signs of organization and preparation. Presentation displayed good research and product design. Excellent presentation that was well organized and well prepared. Presentation displayed excellent research and product design. 25%
Individual Participation Did not contribute to group�s project. Contributed some effort to group�s project and completed some of the assigned tasks. Contributed good effort to group�s project and completed assigned tasks. Contributed excellent effort to group�s project and completed assigned tasks. 30%
Revenue generated Did not generate any revenue from sales of the product due to poor research, poor product design, and understanding of the concepts. Generated some revenue from sales of the product due to some research, good product design, and understanding of the concepts. Generated good revenue from sales of the product due to good research, product design, and understanding of the concepts. Generated the most revenue from sales of the product due to exceptional product design, research, and understanding of the concepts. 15%
Self Evaluation Answered some of the questions and demonstrated poor knowledge of the content. Answered most of the questions and demonstrated some knowledge of the content. Good self evaluation. Answered all questions and demonstrated good knowledge of the content. Excellent self evaluation. Answered all questions with details ad demonstrated great knowledge of the content. 30%

Total Score: 100%

Conclusion

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I hope that by utilizing this lesson, you have learned about supply and demand, and how those two forces affect the price. By now you should be able to answer the questions I had asked earlier in the introduction of this lesson, and the following:

How do supply, demand, andprice affect consumer choices? 

Can you give examples of recent situations where demand exceeded supply? What was the outcome? 

What happens when demand exceeds supply? 

What happens when supply exceeds demand?

Keepingin mind that price and non-price determinants affect consumer decisions, how do non-price determinants create a shift in demand curve?

What causes a shift insupply curve?

Credits
Teacher Page

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The law of supply and demand is one of the most important economic concepts that create challenges for teachers in todays diversified classrooms. I hope students learn about the law of supply and demand by utilizing the interactive and brain based group activity presented in this lesson.

Students should utilize all of the links on the process page to better understand the concepts, which are required for the group activity. In addition, prior to beginning the group activity, the teacher should do an informal assessment of students knowledge by utilizing some of the questions and self-quiz materials that I have included throughout this lesson.

Students should work in groups of 4. Teacher decides on how to form the groups. Students will first read and watch all the materials on the process page. Do an assessment of their knowledge prior to allowing them to work on designing their product. The assessment will allow you to better understand the group member's level of effort to the group project. There is a template available on the process page that will help the students to design their product. . Give students a fixed amount of play money to spend. I've kept most of the instructions on this lesson to minimum in order to retain adolescent students' interest. Provide guidance and structure as needed.

MI. Majiet

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