Lesson author​: Me Date​:

Topic
Economics
Supply/Demand/Price/Equilibrium

Grade Level
10th Grade

Big Ideas(s)

The price of a good is not intrinsic. Instead it is found through a negotiation between buyers and sellers that
can be negatively influenced by bad business practices.

Learning Outcome(s)

Students will be able to explain the strengths and weaknesses of employing a free market economy.

Students will be able to explain in their own words how the free market can be corrupted and influenced by
unfair business practices.

Content Standards
1.3.2 Price, Equilibrium, Elasticity, and Incentives – analyze how prices change through the interaction of
buyers and sellers in a market, including the role of​ supply, demand, equilibrium,​ and elasticity, and
explain how incentives (monetary and non-monetary) affect choices of households and economic
organizations.

Time Estimate
One​ 55 minute class period

Formative Assessment(s)
Rounding out the day will be three questions on Nearpod for the students to answer:

Who determines price?

How can market price be disrupted?
In your opinion, what level of government intervention is necessary?
Summative Assessment

I would have them take an end of the unit test over price equilibrium, supply, and demand. Short answer
questions regarding the movement of the graph based on the number of suppliers and buyers as well as
questions dealing with collusion among businesses and possible solutions.

Review and Anticipation Set

This lesson would presumably come after activities on how supply and demand are influenced
individually. This will be the first time students will see supply and demand put together, though, so
I would like to elicit their thinking about that. The first few minutes will be dedicated to a
think-pair-share over the question: who decided how much your shoes cost? Students will be able
to reply to the question through a Nearpod forum.

Instructional Activities
This will mostly be used done the day before to set up a foundation of understanding for the next
day’s assignment. A lecture with discussion questions and pair share options will be given to build
context for the next day’s lesson. The students will be able to define the supply, demand, and
equilibrium and the they will be reminded how an open market (economic market with no
government interference) is supposed to work in theory. Question of the day will be, “who decided
how much your shoes cost?”

Learning Activities/Tasks

The activity for the day is a simulation for the students. They will be assigned roles as buyers and sellers.
Buyers and sellers will be invited to separate Google Docs that carry instructions on their roles. First, there
will be an even number of buyers and sellers. Sellers will try to sell a “diamond” (students will use marbles)
for no less than $30 and buyers will try to buy a diamond for no more than $120. Every buyer must have a
diamond at the end. The students will then share their buying price on a shared spreadsheet that will display
median price of the round (Price equilibrium in a free market). In the next phase, sellers will collude to raise
prices on the buyers, which will force the price equilibrium to rise. At the end of the round, students will be
asked in Nearpod to explain how price collusion can be prevented and their answers will be discussed by the
class.

At the end, the students will decide what government action might be necessary to prevent price collusion.
Review and Closure

Students will recognize that when all parties are genuine in trying to reach a price agreement, an
equilibrium will be found, on average, between buyers and sellers. When sellers are without
supervision they may decide to collude and raise the price on the buyers. If the product is required
or highly desired, buyers will be forced to pay the higher price. We will also return to our question
from the day before, “Who decided how much your shoes cost?” A few responses will be elicited
and that will end class.

Independent Practice/Homework/Extension Activities

The students will conduct an internet search on a product of their choice. They research how the
price varies by state select one foreign country to compare prices with. They will then speculate
why a product, such as oil, varies in cost between states and between countries.

Materials & Resources

Chromebooks, ​Nearpod​, ​Google Sheets​, ​Google Docs