Lesson Plan Lesson 3

Economics-in-Marketing CTE Lesson Plan

Lesson Title
The Law According to Supply

Lesson Objective
At the completion of this lesson, students will be able to explain the law of supply, graph the
supply curve, and analyze the factors influencing changes in supply.

Concepts
CTE Concept(s)
Law of Supply, Labor
Economic Concept(s)
Law of Supply, Labor

Standards/Benchmarks
Michigan Career and Technical Education
Segment 12
I.D.1 Describe fundamental economic concepts used in marketing.
Michigan Department of Education High School Content Expectations
Social Studies: Economics
1.3.1 Law of Supply. Explain the law of supply and analyze the likely change in supply when
there are changes in prices of the productive resources (e.g., labor, land, capital, including
technology), or the profit opportunities available to producers by selling other goods or services,
or the number of sellers in a market.

Supplies Needed
Student Handout 1 The Concise Encyclopedia of Economics – Supply. By Al Ehrbar
(1 per student)
Student Handout 2 Breakfast Costing More as U.S. Food Prices Rise? Article (1 per
student)
Student Handout 3 Breakfast Costing More as U.S. Food Prices Rise? (1 per student)
Student Handout Answer Key 3 Breakfast Costing More as U.S. Food Prices Rise? Key
Student Handout 4 Graphing Changes in Market Supply (1 per student)
Student Handout Answer Key 4 Graphing Changes in Market Supply Key
Student Handout 5 Create Your Own Supply Graph (1 per student)
Student Handout Answer Key 5 Create Your Own Supply Graph Key
Student Handout 6 Law of Supply - Formal Assessment (1 per student)
Student Handout Answer Key 6 Law of Supply - Formal Assessment Key

Berrien RESA 1 Economics in Marketing Education

Lesson Plan Lesson 3

Economics-in-Marketing CTE Lesson Plan

1. Introduce the CTE lesson.
[Grading is left to the discretion of the teacher.]

Student Handout 1: The Concise Encyclopedia of Economics - Supply (1 per student)

A. Distribute Student Handout 1: The Concise Encyclopedia of Economics – Supply. By Al Ehrbar

1. Students will talk to the text and answer the driving question.
a. Driving Question: How do Supply and Price Interact?
b. Talk to the Text Protocol
i. This is a strategy used to help comprehend readings
ii. Good readers “talk to the text” in their heads
iii. Practicing it by writing it out teaches the readers to do it in their heads
1. Follow these steps:
a. Begin reading the passage
b. Highlight or circle words or phrases you can identify with.
c. In the margins, make notes, ask questions, or make comments,
and/or predictions.
2. Think about the following:
a. Personal connections you can make in reference to the reading.
b. What you wonder or think about as you read.
c. Words, phrases, or sentences that you find interesting.
d. Questions about vocabulary, clarifying questions about the
material.
c. After students complete this strategy and answer the driving question, group students
to discuss the driving question and comments related to the article.

B. Vocabulary Terms

1. Law of Supply: as the price of a good or service that producers are willing and able to offer
for sale during a certain period of time period rises (or falls), the quantity of that good or
service supplied rises (or falls)

2. Supply: the amount of a good or service that producers are willing and able to offer for sale
at each possible price during a given period of time (Econedlink, n.d.).

2. Assess students’ economic awareness as it relates to the CTE lesson.

A. Conduct a class discussion about the correlation of price and supply.

Berrien RESA 2 Economics in Marketing Education

Lesson Plan Lesson 3

Discussion #1: What will a rise in prices do to the number of suppliers in the market? Will it
increase the number of suppliers? Lower this number? Leave it the same?
Possible Answer: Increase the number of suppliers.

3. Work through the economic lesson as it is embedded in the CTE lesson.

A. Discuss supply: the amount of a good or service that producers are willing and able to offer
for sale at each possible price during a given period of time.
1. Example: The local sandwich shop has enough ingredients to make 50 bacon, lettuce,
and tomato sandwiches each day.
2. The above example is the amount, or supply, that is available to sell.
B. Money also has a lot to do with supply.
1. Law of Supply: as the price of a good or service that producers are willing and able
to offer for sale during a certain period of time period rises (or falls), the quantity of
that good or service supplied rises (or falls).

2. The higher the price, the greater the quantity supplied because producers are able to
earn more profit.

3. Example: The sandwich shop is able to sell a BLT for $7 instead of $6.
a. The shop decides to keep enough ingredients in stock to make 60 everyday.
b. Selling 60 BLT sandwiches for $7 each means higher profits.

4. What if the shop is only able to sell the sandwich for $4?
a. Might cut back on the supply
b. Profits will decrease.

4. Work through related, contextual economic-in-CTE examples.

Student Handout 2: Breakfast Costing More as U.S. Food Prices Rise? Article (1 per student)
Student Handout 3: Breakfast Costing More as U.S. Food Prices Rise? (1 per student)
Student Handout Answer Key 3: Breakfast Costing More as U.S. Food Prices Rise? Key

A. Divide students into four groups. Distribute Student Handout 2: Breakfast Costing More as
U.S. Food Prices Rise? Article (Rothwell, 2014).
1. Using the jigsaw strategy:
a. 1’s read the first section
b. 2’s read the Bacon section
c. 3’s read the Coffee section
d. 4’s read the Orange Juice section
2. Give students 5-7 minutes to read their section. Students will then come back together
and share what they read with their other team members.

B. After reading the article, students should complete Student Handout 3: Breakfast Costing
More as U.S. Food Prices Rise?

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Lesson Plan Lesson 3

5. Work through traditional economic examples.

Student Handout 4: Graphing Changes in Market Supply (1 per student)
Student Handout Answer Key 4: Graphing Changes in Market Supply Key

A. Distribute Student Handout 4: Graphing Changes in Market Supply

1. Explain that supply is affected by profit potential. Have each student graph the chart
provided in Student Handout 4: Graphing Changes in Market Supply.
a. Emphasize that a change in price creates a slide/movement along the curve.

B. Display Student Handout Answer Key 4: Graphing Changes in Market Supply Key. Discuss
why the supply curves will shift to the right or left and how price moves along the curve.

1. Factors affecting the shift of the curve

a. Cost of Production decreases/increases - When prices increase the desire to
make a profit encourages producers to increase production.
b. Technology improvements
c. Seller expectations
d. Competition
e. Opportunities in different markets (good/bad)
f. Natural events (ex. good crop year/much supply, the restoration of
peace in a war zone)
g. Government (taxes, regulations, and subsidies)

2. Price moves along the slope of the curve

6. Students demonstrate their understanding.

Student Handout 5: Create Your Own Supply Graph (1 per student)

Student Handout Answer Key 5: Create Your Own Supply Graph Key

A. Distribute Student Handout 5: Create Your Own Supply Graph. They will use concepts taught
in step 5 to create a supply chart and plot three supply curves.

7. Formal assessment.

Student Handout 6: Law of Supply – Formal Assessment (1 per student)

Student Handout Answer Key 6: Law of Supply – Formal Assessment Key

A. Students will complete Student Handout 6: Law of Supply – Formal Assessment.

Berrien RESA 4 Economics in Marketing Education

Lesson Plan Lesson 3

Standards
Lesson Title
The Law According to SUPPLY

Lesson Objective
At the completion of this lesson, students will be able to explain the law of supply in addition to
analyzing the factors influencing the change in supply.

Standards/Benchmarks
Michigan Career and Technical Education
Segment 12
I.D.1 Describe fundamental economic concepts used in marketing.
Michigan Department of Education High School Content Expectations
Social Studies: Economics
1.3.1 Law of Supply. Explain the law of supply and analyze the likely change in supply when
there are changes in prices of the productive resources (e.g., labor, land, capital, including
technology), or the profit opportunities available to producers by selling other goods or services,
or the number of sellers in a market.
MBA Research Performance Indicators
Explain the principles of supply and demand (EC:005, EC LAP 11) (CS)

Berrien RESA 5 Economics in Marketing Education

Lesson Plan Lesson 3

References

Econedlink: Council for Economic Education. (n.d.). Economic Glossary.

Retrieved from http://www.econedlink.org/economic-resources/glossary.php

Rothwell, Steve. (2014) Breakfast costing more as U.S. food prices rise. DallasNews. Retrieved from
http://www.dallasnews.com/business/business-headlines/20140324-new-on-the-breakfast-
menu-sticker-shock.ece

Berrien RESA 6 Economics in Marketing Education