Download Brady_K_VII_Supply and Demand_REVISED

Teacher’s name: Ms. Kristen Brady
Subject: Civics and Economics
Topic: Scarcity, Supply and Demand
Date: 11/6/08
Student ID: 104916663
th
Grade Level: 7 Grade
NCSS Strand:
VII. Production, Distribution, & Consumption
a) Give and explain examples of ways that economic systems structure choices
about how goods and services are to be produced and distributed.
b) Describe the role that supply and demand, prices, incentives, and profits play in
determining what is produced and distributed in a competitive market system.
NCSS Substrands:
V. Individuals, Groups, and Institutions
VI. Power, Authority, and Governance
Essential Questions/Big Ideas
Concepts: Scarcity, Supply and Demand
Essential Questions:
 How do people deal with scarcity, resources, choice, opportunity cost, price,
incentives, supply and demand, production, and consumption?
 What is scarcity?
 What is supply and demand?
 How does supply and demand affect price?
[Note: The following essential questions align with the Virginia Standards of Learning
curriculum outline and include a few other questions that are unique to this lesson.]
General Objective[s]:
Virginia SOL
CE. 11 The student will demonstrate knowledge of how economic decisions are made in
the marketplace by
a) Applying the concepts of scarcity, resources, choice, opportunity cost, price,
incentives, supply and demand, production, and consumption.
Learning Outcomes:
[Note: The following UKDs are from the Curriculum Framework for Stafford County
Public Schools in Virginia. It is also the same as the Standards of Learning (2008)
Curriculum Framework. I offered changes where I felt they were necessary and made
adaptations based on my lesson.]
Students will understand:

People make choices about how to use limited resources, decide the ownership of
resources, and structure markets for the distribution of goods and services.
Students will know:
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Scarcity is the inability to satisfy all wants at the same time. All resources and
goods are limited. This requires that choices be made.
Supply – Quantity supplied rises as prices fall.
Demand – Quantity demanded rises as prices fall.
Resources are factors of production that are used in the production of goods and
services. Types of resources are natural, human, capital, and entrepreneurship.
Choice is selecting and item from a set of possible alternatives. Individuals must
choose/make decisions about desired goods and services because they are limited.
Opportunity Cost is what is given up when a choice is made – the highest value
alternative forgone. Individuals must consider the value of what is given up when
making a choice.
Price is the amount of money exchanged for a good or service. Interaction
between supply and demand determines price. Price determines who acquires
goods and services.
Incentives are things than incite or motivate and are used to change economic
behavior.
Production is the combining human, natural, capital, and entrepreneurship
resources to make goods or provide services. Resources available and consumer
preferences determine what is produced.
Consumption is using goods and services. Consumer preferences and price
determine what is purchased.
[IMPORTANT: For this lesson I only go over Supply and Demand and Scarcity. I
include the definitions above of the entire SOL objective to use this for future
lessons on the rest of the information. I include this information in the DEAN chart
as well.]
Student will be able to:
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Indentify the important components of the economy in regards to scarcity,
resources, choice, opportunity cost, price, incentives, supply and demand,
production, and consumption. (Comprehension)
Analyze the current system and identify the flaws and the benefits. (Analysis)
Design their own graph of supply and demand between an item.
Students will value:
 Our economic system.
Assessment: Methods of Evaluating Student Progress/Performance:
Formal Assessment: The Formal Assessments in this lesson are the supply and demand
guided notes and project.
Informal Assessment: The Informal Assessments of this lesson are the discussion during
notes, the Think-Pair-Share, and the teacher getting the students involved in unpacking
“scarcity”.
Content Outline:
 Economics – The study of how human beings coordinate their wants and desires,
given the decision-making mechanisms, social customs, and political realities of
the society.
 Demand Curve – Graphic representation of the relationship between price and
quantity demanded. Slopes downward to the right.
o Why? As price goes up, quantity demanded goes down. Price and quantity
demanded have an inverse relationship.
 Supply Curve – Slopes upward to the right. As prices rise, supply rises.
 When quantity demanded is greater than quantity supplied, prices tend to rise.
 When quantity supplied is greater than quantity demanded, prices tend to fall.
 Equilibrium – A market in which neither suppliers nor consumers collude and in
which prices are free to adjust. (What we aim for, what the market tends to slide
toward).
 Excess Supply – Quantity supplied is greater than quantity demanded. Also called
a surplus. Prices go down and price in the market falls.
 Excess Demand – Quantity demanded is greater than quantity supplied. Also
called a shortage. Prices rise.
 We have a market economy (economic system based on private property and the
market, in which, in principle, individuals decide how, what, and for whom to
produce).
 Most people make choices based on self-interest and are assumed to be rational.
Vocab, word
Scarcity
Supply
Demand
Definition
Is the inability to
satisfy all wants
at the same time.
All resources
and goods are
limited. This
requires that
choices be made.
Quantity
supplied rises as
prices rise.
Examples
Oil.
Attributes
Non
renewable,
getting smaller
every day, not
infinite.
Non-examples
Infinite supply,
renewable
resources,
Trees.
Computers
Water
Quantity
demanded rises
as prices fall.
Oil.
If prices go up,
people don’t
want to buy the
item, so there
are more of
them.
People buy
more when
prices are low
to save money
before prices
rise.
Supply.
Resources
Choice
Opportunity
Cost
Price
Incentives
Are factors of
production that
are used in the
production of
goods and
services. Types
of resources are
natural, human,
capital, and
entrepreneurship.
Is selecting and
item from a set
of possible
alternatives.
Individuals must
choose/make
decisions about
desired goods
and services
because they are
limited.
Is what is given
up when a choice
is made – the
highest value
alternative
forgone.
Individuals must
consider the
value of what is
given up when
making a choice.
Is the amount of
money
exchanged for a
good or service.
Interaction
between supply
and demand
determines price.
Price determines
who acquires
goods and
services.
Are things than
incite or
motivate and are
used to change
economic
behavior.
Workers, trees,
coal,
electricity, etc.
Natural
resources are
things like oil,
coal, etc.
The finished
product (the
good).
Sometimes
though the
good can be
used to help
production (in
the example of
factories).
A
dictatorship…
or more in this
context:
communism.
Choosing food
over clothes.
Presidential
elections (who
you vote for is
a choice).
Choosing to
study over
watching TV.
The choice you
make can
benefit you or
not be good for
you.
Choice doesn’t
matter.
Buying milk
for $5.
Can rise and
fall depending
on supply and
demand.
Items that are
free.
Bush giving
families and
individuals
money to
entice them to
spend it and
It makes a
person want to
do something
that affects the
economy.
Doing nothing
to change the
way things are.
Production
Consumption
Is the combining
human, natural,
capital, and
entrepreneurship
resources to
make goods or
provide services.
Resources
available and
consumer
preferences
determine what
is produced.
Is using goods
and services.
Consumer
preferences and
price determine
what is
purchased.
“boost” the
economy…
Bread.
Buying a TV.
It takes wheat,
mixers, people,
and a demand
to produce
bread. Each
piece has an
important part
in creating
bread.
Raw materials.
Purchasing an
item, deciding
that item is one
you need,
paying for the
item with
money.
A boycott.
Student and Teacher Activities with Estimated Time Blocks:

Hook and Anticipatory Set: [15 minutes]
o When students come into class there will be three to six chairs missing
(depending on the amount of students in the classroom). The students will
be told to do their Bell Work and will probably seem confused about the
missing chairs. When they ask about the chairs the teacher can tell them
that it is to show them what scarcity means. The teacher should then write
the word on the board and ask the students, “based on their previous
experience, what do they think scarcity means?” After students unpack the
word the teacher can write the real definition (as written in the DEAN
chart) on the board.
o The Bell Work question for the day should still be answered and will be
“Write about a time when you wanted something (a new bike, new
clothes, etc) but you couldn’t have it. Why couldn’t you have it? Did you
do anything to change that?” That will have them thinking about a time
when they weren’t able to purchase something and they will be able to
connect many lessons in economics back to that experience.
o The Essential Question that is addressed in the two above parts of the
lesson are:
 What is scarcity?

Lecture with Guided Notes: [30 minutes]
o The teacher will discuss supply and demand with the students. First the
teacher needs to pass out the guided notes with the two blank graphs for
supply and demand with the two general principles of supply and demand
for the students to complete during the lecture. The teacher should also
draw a few examples on the board of supply and demand curves that will
hold the students’ interests. Some examples would be demand for concert
tickets to see the Jonas Brothers (Because so many girls love the Jonas
Brothers and want to see them play in concert, they can sell their tickets
for a higher price). The students will begin to understand that if demand
rises, prices also rise and they will have to pay more. The teacher should
use the DEAN chart or the Content Outline to discuss and talk about
Supply and Demand. Another important example that the teacher needs to
discuss is Gas Prices. That topic affects the lives of most students (though
they can’t drive in seventh grade) because their parents have to pay for gas
and they are probably anticipating getting their learner’s permits in a few
years.
o The teacher should show students this political cartoon:
o The teacher should facilitate a THINK-PAIR-SHARE in which students
think to themselves what this cartoon means, share with their neighbor,
and then get called on to give their answer in class. The students and
teacher should have a discussion about how gas prices have gone up
because they demand is high and the supply is low.
o This portion of the lesson addresses the following Essential Questions:
 What is Supply and Demand?
 How does Supply and Demand affect price?
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Student Activity: [40 minutes]
o Students will be given the opportunity to create their own supply and
demand graph and situation.
o Students should be passed out the project information sheet with the rubric
included. They will have to come up with a real life situation in which
supply and demand of a good and service has caused changes in price.
They can use and example in the United States or in another country.
o It is important that students are given the resources to do this project:
Computers, Newspapers, Etc.
o It is important for students to choose their topic based on a current or past
event.
o The students will work on their projects during class time and should be
given a few blank supply and demand curve graph sheets.
o The teacher can give students an example: Gas is going down in supply,
but demand is high because driving is considered necessary so prices rise.
People aren’t happy about this. It was a big topic in the 2008 Presidential
Election.
o Students should work with a partner. For students that are struggling with
the information teachers should place them with a student that is
understanding the material well.
o At the end of class the teacher will collect the final products for a grade.
o This portion of the lesson addresses the following Essential Questions:
 What is Supply and Demand?
 How does Supply and Demand affect price?
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Homework: [30 minutes]
o For homework students should complete a DEAN chart for the following
terms: Opportunity Cost, Incentives, Production, and Consumption
o They should use their books or the internet. It is only four terms but it is
important for students to know what they mean before coming to class the
next day.
Materials Needed for the Lesson:
 A chalk or dry erase board. Chalk and/or dry erase marker.
 A place to easily store the chairs.
 Students need to have their Bell Work notebooks (which they should bring with
them to every class).
 The guided notes to hand out to students.
 The in-class project description and rubric.
 A way for students to look up information for their projects.
Bibliography/Resources Used:
(2008). History and Social Science Standards of Learning Curriculum Framework. The
Virginia Department of Education. Retrieved from
http://www.doe.virginia.gov/VDOE/Instruction/History/curriculum_framework_2
008/Govt-CF-08.pdf.
Colander, D. C. (2006). Microeconomics. Boston: McGraw-Hill Irwin.
Differentiation for Special Needs:
Struggling Readers: Because the lesson involves charts, writing, and working with others,
struggling readers will not feel pressured to keep up with the lesson. When the teacher is
writing on the board (definitions) he/she is vocalizing the writing. Students that struggle
with reading will benefit from the writing being vocalized.
ELL: Students that are still having trouble grasp English will benefit by participating in
the Think-Pair-Share activity. They will also get to see graphs and use the guided notes,
which is mostly a visual activity.
ADHD: Students with ADHD will appreciate the different activities that the day’s lesson
presents. The lesson also begins with the hook which students can relate to their own
lives. It creates an immediate experience for students to connect with and look back to
during the lesson.
Subject Matter Integration/Extension: Supply, Demand, and Scarcity are huge issues
in day to day life for citizens. Gas Prices are a huge deal right now in current issues and
students need to understand why it is a problem. They also will become (though most
already are) consumers in the economy and should understand how the system works that
they are participating in. Economics also reaches across the spectrum to Math as graphs
and charts are used. Students need to be able to read graphs in charts in their lives and
most subjects require it as a necessary skill.
Reflections/PPT’s in Lesson: This lesson fits with my philosophy of teaching because
its gets students thinking about how the content is relevant to their lives and the lives of
others around them. It shows students that they can’t always get what they want (scarcity)
and why (supply and demand). The lesson also equips them with knowledge of current
and past events and how they are related to supply and demand. They have to search and
discover the situations themselves, but it will give them a new way to look at history and
current events through an economic perspective. I believe students need to look at history
through a lens that includes a social, economic, and historical perspective.