How

Markets Work!
Principles of Economics
9th Grade
9 class periods- 81 minutes each
McKenzie Kelly
19 February 2015

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 2 Demand
Established Goals:

Understand that demand curve can shift because of a change in population, income, tastes and preferences, and consumer
expectations
Identify complements and substitutes and be able to explain how a change in price in these types of goods will impact the
demand curve
Understand the concept of elasticity as a means to show how much more or less consumers buy when prices change
Identify the difference between elastic and inelastic goods and how producers use elasticity of these goods to maximize their
profits

Understandings: Students will understand that

The demand curve can shift due to a change in

preferences and tastes and consumer expectations

The difference between complements and substitutes.

When the price of a good increases, consumers will buy
more of its substitutes and less of its complements

Elasticity showcases how much more or how much less

people buy when prices change.

The demand for elastic goods is dependent on the price

of a good; whereas the demand for inelastic goods is
unaffected by a change in price

Producers respond in the market by raising the price of

inelastic goods and lowering the price of elastic goods
Students will know:

Essential Questions:

As consumers, how do we impact the future?

o What are the effects of a change in
demand on consumers, producers, and
the economy as a whole?
o How does elasticity effect decisions you
make daily?

Students will be able to:

All chapter vocabulary (elasticity of demand and total

revenue)

Identify the determinants that create changes in demand

and that can cause a shift in the demand curve

How a demand curve shifts with an increase in

population, increase in income, a change in tastes and
preferences, and a change in consumer expectations

Explain how the change in the price of one good can

affect demand for a related good

The difference between complements and substitutes

and how a change in price will effect the demand for
each type of good

Explain how to calculate elasticity of demand

The difference between elastic and inelastic goods and

how a change in price will effect the demand for each
type of good

Identify factors that affect elasticity

Explain how firms use elasticity and revenue to make
decisions

State standards addressed:

6.2.9.D: Explain the laws of supply and demand and how

these affect the prices of goods and services.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Chapter study guide Sections 2-3

Completion of Product Sales Activity where students will
create or chose an idem to sell and poll other students to
determine how much of the idem they will be willing to
purchase at various prices. Based on the results from the
poll, students will create a demand schedule and
demand curve showing how as prices increase the
quantity demanded will decrease (Created by Mr.
Creeger)

Participation with class PowerPoint lecture including the

answering of partner questions (see Chapter 4
PowerPoint)

Goal Accounting Template (Pre-learning Score, Class

Effort, and Understanding as I leave class)

Completion of Demand Graph Shift Handout that will

allow students to demonstrate how various scenarios
(change in temperature, change in price, etc.) will effect
the demand for a product

Key Criteria:

As represented in the following classs warm-up, students will be able to complete a graphic organizer that outlines the main
points of demand from Chapter 4. This includes the law of demand, the picture of the demand curve, elasticity, and the shifters
of the demand curve.

STAGE 3 LEARNING PLAN
Summary of Learning Activities:
Opening:

Think-Pair-Share: What are the two ways we learned that demand can change? How does this shift look? What types of goods do you
consider to be normal? Inferior?
Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

The class will then work through a PowerPoint Presentation for Chapter 4 to finish Section 2, which will explain and demonstrate key
concepts (see Chapter 4 PowerPoint). The class will work to complete a study guide that was created by Mr. Creeger. The PowerPoint will
be dispersed with different questions and interactive activities to enhance understanding and participation (again see PowerPoint
Chapter 4).

Students will then complete the Product Sales Activity worksheet. Students will use their findings from polling various students to create
a demand schedule and demand curve showing how as price increases the demand for their product will decrease.

The class will then work through another PowerPoint Presentation for Chapter 4, Section 3, which will explain and demonstrate key
concepts (see Chapter 4 PowerPoint). The class will again work to complete their study guide that was created by Mr. Creeger.

With any time remaining, students may check their performance and buy/sell stocks accordingly on the online Stock Market Game.


Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide. By the
end of the lesson, Sections 2-3 should be filled in and answered correctly. A thorough read-through of study guides by the teacher will
occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the criteria of
objectives and goals for the days lesson.
Closing:

Students will complete a Demand Shift Worksheet that will allow students to practice what they have learned about shifters of the
demand curve. Students will need to finish the worksheet in its entirety for homework.

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 3 Supply
Established Goals:

Understand that, according to the law of supply, producers will sell more at a higher price

Firms will continue to produce as long as they are making money, but will shutdown otherwise.

Competition can limit a businesss ability to make a profit; while time can constrict a businesss ability to change prices
Producers make most critical decisions at the margin. For example, when adding an extra unit of labor, producers must weigh
the cost and price.

Understandings: Students will understand that

Producers sell more at a higher price according to the law

of supply

The supply curve is upward sloping or as price increases

supply will also increase

Producers seek to have increasing marginal returns when

looking to hire an additional labor

Fixed costs are long-term; while, variable costs are short-

term

Firms will continue to produce as long as they are making

a profit, but will shut down otherwise
Students will know:

Essential Questions:

Do producers have more power than consumers?

o How is the law of supply proven and/or
discredited in our current market?
o What decisions are best made at the
margin?

All chapter vocabulary (supply, variable, marginal

product of labor, marginal cost, and marginal revenue)
Producers consider the margin during their most
important decisions, weighing the cost and the price
(P=MC)
The difference between fixed, variable, and total costs
How a firm chooses to set output
If and when a firm will shut-down

Students will be able to:

Explain the law of supply

Explain how firms decide how much labor to hire to

produce a certain level of a product

Analyze the production costs of a firm

Interpret a supply graph using a supply schedule

Explain the relationship between elasticity of supply and
time

State standards addressed:

6.2.9.D: Explain the laws of supply and demand and how

these affect the prices of goods and services.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Chapter study guide Sections 1-2

Completion of a Demand Concept Map during the Warm-

Up that reviews all the main ideas from the previous
chapter

Participation with class PowerPoint lecture including the

answering of partner questions (see Chapter 5
PowerPoint)

Accurate completion (and corrections as needed) of the

Demand Shift Worksheet

Goal Accounting Template (Pre-learning Score, Class

Effort, and Understanding as I leave class)

Playing the online Lemonade Stand Game where

students will act as the producer setting a price and
choosing the ingredients to create lemonade. Students
will also complete a worksheet that outlines the
decisions they chose to make during each round of the
game

Beginning the Lemonade Stand Activity where students

will break into groups and create their own lemonade

choosing their ingredients and price and creating their

own advertisement.
Key Criteria:
As represented in the following classs warm-up, students will be able to answer the following questions: What is the law of
supply? What does the supply curve look like? How do businesses decide how much of a product to produce?
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Students will work in groups to complete a demand concept map that outlines all of the key points from the last chapter.
Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

The class will then go over the Demand Shift Worksheet from last class. Students will be asked to correct their own work and then turn in
the worksheet at the end of the class period for credit.

After, the class will play the online lemonade stand game where they will start to think like producers by selling their own lemonade. In
this stimulation, students will choose their ingredients and price. Students will also fill out a worksheet as they play that will help them to
keep track of their decisions and how each, in turn, affected their profit.

The class will then work through a PowerPoint Presentation for Chapter 5 Section 1 &2, which will explain and demonstrate key concepts
(see Chapter 5 PowerPoint). The class will work to complete a study guide that was created by Mr. Creeger. The PowerPoint will be
dispersed with different questions and interactive activities to enhance understanding and participation (again see PowerPoint Chapter
5).

With the time remaining, students will break into small groups and begin the Lemonade Stand Activity where they will create their own
lemonade choosing their ingredients and price and create their own advertisement. Students should complete at least the first page of
activity by the end of class that asks groups to determine their targeted market group and brainstorm various ingredients and prices.


Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide. By the
end of the lesson, Sections 1 and some of Section 2 should be filled in and answered correctly. A thorough read-through of study guides
by the teacher will occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the criteria of
objectives and goals for the days lesson.
Closing:

Students should find the post-it note that they created during the chapter on Demand and add a supply curve do their graph. Students
should each now have a post-it note with a demand and supply curve displayed in the back of the classroom.

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 4 Supply
Established Goals:

Understand factors that will increase supply (technology) and decrease supply (rising costs) and how these factors impact
movement of the supply curve

Identify and differentiate the difference between subsidy, excise tax, and regulation and how each impact supply

Understandings: Students will understand that

Rising costs cause the supply to decrease or shift left

because output is reduced and price is increased

New technology causes the supply to increase or shift

right because output is increased and price is reduced

A subsidy increases supply; while an excise tax decreases

supply
Students will know:

Essential Questions:

Do producers have more power than consumers?

o Is the government justified in controlling
supply in the market?

Students will be able to:

All chapter vocabulary (subsidy, excise tax, regulation)

The impact of new technology and rising costs can have

on supply

Identify how determinants such as input costs create

changes in supply

Identify 3 ways that the government can influence the

supply of a good

Analyze the effects of other factors that affect supply

State standards addressed:

6.2.9.D: Explain the laws of supply and demand and how

these affect the prices of goods and services.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Chapter study guide Sections 3

Participation with class PowerPoint lecture including the

answering of partner questions (see Chapter 5
PowerPoint)

Goal Accounting Template (Pre-learning Score, Class

Effort, and Understanding as I leave class)

Accurate completion (and corrections as needed) of the

Supply Shift Worksheet

Lemonade Stand Activity where students will break into

groups and create their own lemonade choosing their
ingredients and price and creating their own
advertisement.
Key Criteria:

As represented in the following classs warm-up, students will be able to accurately complete a Supply Concept Map that
highlights the key concepts established in Chapter 5.
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Think- Pair-Share: What is the law of supply? What does the supply curve look like? How do businesses decide how much of a product to
produce?

Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

The class will then work through a PowerPoint Presentation for Chapter 5 Section 3, which will explain and demonstrate key concepts
(see Chapter 5 PowerPoint). The class will work to complete a study guide that was created by Mr. Creeger. The PowerPoint will be
dispersed with different questions and interactive activities to enhance understanding and participation (again see PowerPoint Chapter
5).


Students will then work in groups to complete the Supply Shift Worksheet. After students have had a chance to complete/attempt each
problem, the worksheet will be reviewed together as an entire class.

With the time remaining, students will work with the groups they established last class to finish Step 1&2 of the Lemonade Stand Activity.
Students should create their recipe, determine their cost, complete the follow-up questions, and prepare their advertisements. Groups
should be ready to present their advertisements and create their lemonade at the beginning of next class.


Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide. By the
end of the lesson, Sections 3 should be filled in and answered correctly. A thorough read-through of study guides by the teacher will
occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the criteria of
objectives and goals for the days lesson.

Closing:

Think-Pair-Share: Who is demand all about? What do consumers do when the price of a product is low or high? Who is supply all about?
What do producers do when prices are low or high?

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works! -Day 5 Supply
Established Goals:

Understand various factors that must be considered by producers to meet the demands of consumers
Identify how price, advertisements, and quality impact a consumers decision

Understandings: Students will understand that

Consumers decisions directly impact the choices made

by producers

Producers will strive to produce the more of a product at

the higher cost

The difference between the focus of consumers and

producers
Students will know:

Essential Questions:

Do producers have more power than consumers?

o What is the most influential factor in the
marketplace (cost, preferences,
advertisements, etc.)?

Students will be able to:

The law of demand that consumers want to buy more

when the price is lower

Weigh the benefits and costs producers must consider

when deciding on quantity and price of a product

The law of supply that producers want to sell more at a

higher price

Evaluate the effectiveness of various marketing

strategies in the marketplace (advertisements)

State standards addressed:

6.2.9.D: Explain the laws of supply and demand and how

these affect the prices of goods and services.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Supply Concept Map that outlines the

major concepts from Chapter 6

Participation with debriefing class discussion following

the Lemonade Stand Activity.

Lemonade Stand Activity: Students will make their

lemonade (according to their recipe) and share
advertisements and price with judges. Judges will
determine which lemonade they would be willing to
purchase
Key Criteria:

Concluding the lesson, students should have a proficient understanding of both supply and demand. This proficiency will be
measured based on performance of quiz given during the next class period.
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Students will work in groups to complete the Supply Concept Map that outlines the most important concepts from Chapter 5

Content:

Lemonade Stand Activity: Students will make their lemonade (according to their recipe) and share advertisements and price with judges.
Judges will determine which lemonade they would be willing to purchase


Checking for Understanding:

Students will receive a grade for Lemonade Stand Activity based on the accompanied rubric. The grade will encompass completion of the
worksheet, performance of advertisement, level of effort/creativity, and professionalism.

Closing:


Concluding the activity, the class will discuss the following debriefing questions as a group: What do you think influenced the judges
decision? Who were the suppliers? What was their focus? Who were the consumers? What was their focus?

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 6 Prices
Established Goals:

Understand the point of equilibrium as the intersection of happiness or the point as which both consumers and producers are
satisfied

Identify the point of equilibrium on a supply and demand curve graph

Differentiate between equilibrium and disequilibrium, excess demand and excess supply, and price floors and price ceilings
Identify and explain how changes in demand and supply can effect price and create a new point of equilibrium

Understandings: Students will understand that

Equilibrium is the only spot along a supply and demand

curve where both sides are equally happy with both price
and quantity

The government will intervene in the market place to

help satisfy equilibrium and avoid disequilibrium (price
floor and price ceiling)

As demand or supply increases or decreases, the point of

market equilibrium will also adjust

Essential Questions:

Can absolute balance ever truly exist?

o Is it possible for both consumers and
producers to be happy?
o What are the implications if or when
perfect balance or happiness is not
achieved in the marketplace?

Students will know:

Students will be able to:

All chapter vocabulary (rent control, minimum wage,

surplus, shortage)

Explain how supply and demand create balance in the

marketplace

Equilibrium is considered the intersection of happiness

where both consumers and producers are both satisfied

Compare a market in equilibrium with a market in

disequilibrium

The difference between excess demand where

consumers are unhappy and excess supply where
producers are unhappy

Identify how the government sometimes intervenes in

markets to control prices

The rationale for producers and consumers to seek

equilibrium

Analyze the effects of price ceilings and floors

Explain how a market reacts to shifts in demand by

moving to a new equilibrium

Identify the determinants that create changes in price

Explain how a market reacts to a fall in supply by moving
to a new equilibrium

State standards addressed:

6.2.9.B: Explain how competition between buyers and

sellers affects price.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Demand (Chapter 4) and Supply (Chapter 5) Quiz

Participation with class PowerPoint lecture

including the answering of partner questions
(see Chapter 6 PowerPoint)

Goal Accounting Template (Pre-learning Score,

Class Effort, and Understanding as I leave class)

Completion of Chapter 6 study guide Sections 1-2

Completion of final Market Shift worksheet that incorporates both
demand and supply curve shifts and how each effect market
equilibrium

Key Criteria:
As represented in the following classs warm-up, students will be able to identify where the point of happiness or market
equilibrium is located on a demand and supply curve graph
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Students will have 5 minutes to look over materials from Chapter 4 and Chapter 5. All students will then take the Demand and Supply
Quiz. As they finish, students can pick up a Chapter 6 Study Guide and fill in the vocabulary terms and then check their progress silently on
the Stock Market Game.

Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

Think-Pair-Share: What do you think of the following quote? Do you agree or disagree? Too many people think that economics is this
subject that should wait until the university level. But it can't wait that long. Robert Duvall

The class will then work through a PowerPoint Presentation for Chapter 6, which will explain and demonstrate key concepts (see Chapter
6 PowerPoint). The class will work to complete a study guide that was created by Mr. Creeger. The PowerPoint will be dispersed with
different questions and interactive activities to enhance understanding and participation (again see PowerPoint Chapter 6).


Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide. By the
end of the lesson, all sections should be filled in and answered correctly. A thorough read-through of study guides by the teacher will
occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the criteria of
objectives and goals for the days lesson.

Closing:

Students will use what they learned about market equilibrium and prices to complete another Shift worksheet, which incorporates both
demand and supply shifts and how each impact market equilibrium. Students will complete what they dont finish in class for homework.

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 7 Market Structures
Established Goals:

Define and provide examples for each of the market structures: monopoly, oligopoly, monopolistic competition and perfect
competition

Identify the four conditions of perfect and monopolistic competition

Determine the number of firms present in each of the market structures: monopoly, oligopoly, monopolistic competition and
perfect competition

Identify the varying degrees of market power between the different market structures
Understandings: Students will understand that
Essential Questions:

Perfect competition is a market structure with a large

Which type of market structure would you

number of firms that produce the same product (i.e.
personally want your business to be in?
Stock market or farm products)
o What are the most distinguished
differences between the following market

Monopolistic Competition is many companies sell

structures: monopoly, oligopoly,
products that are similar, but are not identical (i.e.
monopolistic competition and perfect
different clothes, jolly rancher flavors)
competition?

Oligopoly is a market dominated by a few large firms (i.e.

airlines, television)

Monopoly is a situation where barriers prevent firms

from entering a market that has a single supplier (i.e. US
Postal Service, local water supply, etc.)
Students will know:
Students will be able to:

All chapter vocabulary (commodity, economy of scale,

price discrimination, market power, price war, price
fixing)

That a monopoly has the most market power and a

perfectly competitive market has the least

To make the most profit, a firm needs to have a high

level of control over the price. Therefore, monopolies
make the highest profit

Describe the four conditions that are in place in a

perfectly competitive market

Describe prices are output in a perfectly competitive

market

Describe characteristics and give examples of a

monopoly

Describe characteristics and give examples of

monopolistic competition

Describe characteristics and give examples of oligopoly

State standards addressed:

6.2.9.B: Explain how competition between buyers and

sellers affects price.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Chapter 7 study guide (front side only)

Completion and corrections as needed of final Market
Shift worksheet that incorporates both demand and
supply curve shifts and how each effect market
equilibrium

Participation in Birka Card Game: card trading game that

demonstrates how market equilibrium is determined and
how decisions are made at the margin

Participation in Market Structure Stimulation which will

demonstrate to students the difference between a
monopoly, oligopoly, monopolistic competition, and
perfect competition

Key Criteria:

Participation with class PowerPoint lecture

including the answering of partner questions
(see Chapter 7 PowerPoint)

Goal Accounting Template (Pre-learning Score,

Class Effort, and Understanding as I leave class)

As represented in the following classs warm-up, students will be able to answer: What are the four different market
structures? What is the difference? Which has the most market power? Which has the least market power? What are
examples of each (in real life or in the candy stimulation from last class)
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Students will locate their post-it in the back of the room (that now has a demand and supply curve pictured) and label the point
of happiness or market equilibrium.
Think-Pair-Share: What is this point? What does it mean?

Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

The class will review the Market Shift worksheet that was assigned during the last class period. This will act as a review of Chapter
6 showcasing how market equilibrium is affected by changes in either or both supply and demand.

The class will then play the Birka Card Game. The Birka Card Game is designed to highlight how market equilibrium is determined
in the market and how decisions are made at the margin. Students will pretend that they are Vikings who have returned to a
medieval output of BIrka to trade loot from villages they have plundered (wooden spades, uncut diamonds, wooden clubs, and
heart-shaped bronze amulets). Students will divide into groups of 5-6 people. Each student will receive 14 cards with the goal of
trading to receive the highest score. The highest score is received by having the fewest cards in each suit (see Birka scoring
handout). Students will take turns requesting a trade from the other members of the group. A successful trade will allow students
to get ride cards in a suite where they have ample cards; while gaining more cards in a suite were they are lacking cards, finding
equilibrium between the producer and consumer. Concluding the activity, the class will discuss some reflection points including:
Who won? What strategies were used? What were you really trying to achieve?

The class will then switch gears with Market Structure Stimulation to introduce Chapter 7. Students will be divided into different
markets. One person will be a monopoly and receive a unique candy. Three students will become an oligopoly that will receive an
identical, yet different candy (ex. Different flavor Starburst). The students in the oligopoly will be able to talk to one another.
Another three students will become a monopolistic competition and receive different types of candy. Finally, the rest of the class
will become a perfect competition market and receive identical pieces of candy. Each student will get out a scrap piece of paper
and price their item from $0.05 to $0.25. The teacher will then purchase one item from each market structure. Students will
quickly notice that the monopoly has the most power and can charge a high price; whereas perfect competition has the least
amount of power and will charge the lowest price.


The class will then work through a PowerPoint Presentation for Chapter 7, which will explain and demonstrate key concepts (see
Chapter 7 PowerPoint). The class will work to complete the front side of a study guide that was created by Mr. Creeger. The
PowerPoint will be dispersed with different questions and interactive activities to enhance understanding and participation (again
see PowerPoint Chapter 7).

Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide.
By the end of the lesson, the front side of the Chapter 7 study guide should be filled in and answered correctly. A thorough read-
through of study guides by the teacher will occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the
criteria of objectives and goals for the days lesson.

Closing:

Every student will take turns writing one thing that they learned on the board. The teacher will take a picture of board upon
completion to show students at the following class.


STAGE 1 DESIRED RESULTS
Unit Title: How the Market Works!-Day 8 Market Structures
Established Goals:

Understand that monopolies have the most market power and make the highest profit; while, perfectly competitive
markets have the least market power and make the smallest profit

Price discrimination is used to take advantage of consumers and charge more to those willing to pay more

In order to protect consumers, governments will sometimes restrict the amount of market power a business can
have.
Understandings: Students will understand that
Essential Questions:

Market Power ranges as follows (from highest

Which type of market structure would you personally

to lowest): Monopoly, Oligopoly, Monopolistic
want your business to be in?
Competition, and Perfect Competition
o What are the most distinguished differences
between the following market structures:

Profit ranges as follows (from highest to

monopoly, oligopoly, monopolistic
lowest): Monopoly, Oligopoly, Monopolistic
competition and perfect competition?
Competition, and Perfect Competition

Price discrimination is when a firm takes

advantage of a consumer by charging more to
those willing to pay more

Government will intervene in the market in

order to protect consumers and keep prices low
and output high
Students will know:
Students will be able to:

All chapter vocabulary (commodity, economy of

scale, price discrimination, market power, price
war, price fixing)

How firms use market power

Examples of price discrimination in the

marketplace

Why government regulation is often focused

around monopolies, oligopolies, and
monopolistic competition

Describe prices are output in a perfectly competitive

market

Explain how a firm with a monopoly sets output and price,

and why companies practice price discrimination

Explain how firms compete without lowering prices

State standards addressed:

6.2.9.B: Explain how competition between

buyers and sellers affects price.

Performance Tasks:

STAGE 2 ASSESSMENT EVIDENCE

Other Evidence:

Completion of Chapter 7 study guide (back side only)

(Optional) Completion of AP Unit Test Option. Students

who score high enough on this more analytically
challenging test will be exempt from the standard unit
test
Key Criteria:

Participation with class PowerPoint lecture

including the answering of partner questions
(see Chapter 7 PowerPoint)

Goal Accounting Template (Pre-learning Score,

Class Effort, and Understanding as I leave class)

Creation and presentation of group poster highlighting

the main points or ideas of a given chapter or sections

Students should have a proficient understanding in all of the Unit 2 topics (Demand, Supply, Prices, and Market
Structure). Mastery will be determined by each students performance on the Unit Test given the next class period.
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Think-Pair-Share: What are the four different market structures? What is the difference? Which has the most market power?
Which has the least market power? What are examples of each?

Content:

Class will begin with the completion of a Pre-learning score on the Units Goal Accounting Template.

Students will be given time to work with a partner to attempt to answer the questions on the back of the study guide. Students
will be directed to use what they learned last class as well as the textbook for support.

The class will then work through a PowerPoint Presentation for the rest of Chapter 7, which will explain and demonstrate key
concepts (see Chapter 7 PowerPoint). The class will work to complete the backside of a study guide that was created by Mr.
Creeger. The PowerPoint will be dispersed with different questions and interactive activities to enhance understanding and
participation (again see PowerPoint Chapter 7).

The students will then separate into small groups who will each be given a chapter or sections from the unit to depict on the
large poster board. Students will be encouraged to include all major/important concepts in a visual depiction that is as creative
as possible. Students will present their visual to the rest of a class (again students are encouraged to get creative).

Checking for Understanding:

Throughout the class period, the teacher will walk around the classroom and check on the progress of the Chapter Study Guide.
By the end of the lesson, the back side of the Chapter 7 study guide should be filled in and answered correctly. A thorough read-
through of study guides by the teacher will occur after they are completed and collected before the Unit Test.

Revisiting the Goal Accounting Template. Students will rate their class effort and understanding as they leave class on the
criteria of objectives and goals for the days lesson.

Closing:

Students will be given the option to take the AP test that includes concepts from Unit 2. Since this test will be more challenging,
students who score high enough will be exempt from the standard unit test.

Students who opt out of the AP test option will be given the rest of the class period to work on the Stock Market Game.

STAGE 1 DESIRED RESULTS

Unit Title: How the Market Works!-Day 9- Unit Test
Established Goals:

Explain the law of demand and draw a picture of the demand curve

Identify the determinants that create changes in demand & that can cause a shift in the demand curve

Explain why elasticity of demand is used and how producers use elasticity to maximize profits

Explain the law of supply and draw a picture of the supply curve

Analyze the production costs of a firm & how they decide how much labor to hire to produce a certain level of output

Identify how determinants such as output cost create changes in supply

Explain how supply & demand create balance in the marketplace

Explain how a market reacts to a fall supply and/or shifts in demand by moving to a new equilibrium

Explain the difference between the following market structures: perfect competition, monopolistic competition, oligopoly, and
monopoly

Identify which market structures have the most and least market power and ability to make a profit
Understandings: Students will understand that
Essential Questions:

As consumers, how do we impact the future?

The law of demand states that consumers buy more as

Do producers have more power than consumers?

price increases

Can absolute balance ever truly exist?

The demand curve is downward sloping

Which type of market structure would you personally

Elasticity showcases how much more or how much less
want your business to be in?
people buy when prices change


Producers respond in the market by raising the price of

inelastic goods and lowering the price of elastic goods

Producers sell more at the higher price according to the

law of supply

The supply curve is upward sloping or as price increases

supply will also increase

Producers seek to have increasing marginal returns when

looking to hire an additional labor

Rising costs cause the supply to decrease or shift left

because output is reduced and price is increased

New technology causes the supply to increase or shift

right because output is increased and price is reduced
Equilibrium is the only spot along a supply and demand
curve where both sides are equally happy with both price
and quantity

As demand or supply increases or decreases, the point of

market equilibrium will also adjust
Perfect competition is a market structure with a large
number of firms that produce the same product (i.e.
Stock market or farm products)
Monopolistic Competition is many companies sell
products that are similar, but are not identical (i.e.
different clothes, jolly rancher flavors)
Oligopoly is a market dominated by a few large firms (i.e.
airlines, television)
Monopoly is a situation where barriers prevent firms
from entering a market that has a single supplier (i.e. US
Postal Service, local water supply, etc.)
Market Power ranges as follows (from highest to lowest):
Monopoly, Oligopoly, Monopolistic Competition, and
Perfect Competition
Profit ranges as follows (from highest to lowest):
Monopoly, Oligopoly, Monopolistic Competition, and
Perfect Competition

Students will know:

All chapter vocabulary (See Study Guides Chapter 4-7)

How change in the price of one good can affect demand

for a related good

Factors that affect elasticity

Students will be able to:

Create a demand schedule for an individual and a market

The law of demand

The determinants that create changes in demand and

that can cause a shift in the demand curve

Explain how firms use elasticity and revenue to make

decisions

Interpret a supply graph using a supply schedule

Explain the relationship between elasticity of supply and

time

Analyze the production costs of a firm

How supply and demand create balance in the

marketplace

How a market reacts to a fall in supply by moving to a

new equilibrium

Identify 3 ways that the government can influence the

supply of a good
Analyze the effects of other factors that affect supply

How a market reacts to shifts in demand by moving to a

new equilibrium

The four conditions that are in place in a perfectly

competitive market

Evaluate the effectiveness of various marketing

strategies in the marketplace (advertisements)

Characteristics and examples of a monopoly,

monopolistic competition, and oligopoly

Compare a market in equilibrium with a market in

disequilibrium

How a firm with a monopoly sets output and price, and

why companies practice price discrimination

Identify how the government sometimes intervenes in

markets to control prices

How firms compete without lowering prices

Analyze the effects of price ceilings and floors

The law of supply

Create a demand curve with quantity on the x-axis and

price on the y-axis

Explain how firms decide how much labor to hire to

produce a certain level of a product
Identify how determinants such as input costs create
changes in supply

Weigh the benefits and costs producers must consider

when deciding on quantity and price of a product

Identify the determinants that create changes in price

Describe prices are output in a perfectly competitive
market

State standards addressed:

6.2.9.D: Explain the laws of supply and demand and how

these affect the prices of goods and services.

6.2.9.B: Explain how competition between buyers and

sellers affects price.
STAGE 2 ASSESSMENT EVIDENCE
Performance Tasks:
Other Evidence:

Unit Test Chapters 4-7

o Created by Mr. Creeger/Ms. Kelly
o Includes multiple choice, matching, and short
answer

(Optional) Performance on AP Economics test

o Questions correlate to units concepts

Completion and accuracy of all Unit Study Guides

(Chapter 4-7)
o Collected and graded for completion

Goal Accounting Template (Pre-learning Score, Class

Effort, and Understanding as I leave class)
o For all Objectives & Goals of the Unit

Key Criteria:
Students are proficient in the Units established goals, understandings and objectives as represented by a 70% or better grade
on the Unit test or corresponding score on the AP Economics test
STAGE 3 LEARNING PLAN
Summary of Learning Activities:

Opening:

Students will be given 5 minutes to review materials and ask any last minute questions. Study Guides (Chapter 4-7) will be collected.

Content:

Class will complete Unit 1 test (multiple choice, matching and short answer). Students will be given the entire class period to complete.

During the test, the teacher will circulate to check the completion (not the scores listed) on the Goal Accounting Template. Students will
be rewarded bonus points if the template is completed in its entirety.

Students that have tested out of the Unit test by a sufficient score on the AP Economics test will be given the option of working on the
Stock Market Game independently or completing the chapter vocabulary for the next chapter (Chapter 8: Business Organizations)

As students complete the Unit test, they will also be given the option of working on the Stock Market Game or next chapter vocabulary.


Checking for Understanding:

Unit Test (Chapters 4-7)

Closing:

Unit Tests will be collected at the end of the period.