Download The Prices Are Changing

Monday October 31st
Bell Ringer: Have you ever noticed that department
stores often sell summer clothes at lower prices as
the summer draws to a close. Explain in 2-3
sentences why this might be the case.
Objective: SWBAT explain the concepts of Supply
and Demand, Market, and of equilibrium price.
Homework: Weekly Article
Possible Reasons (BR)
Stores may be trying to empty their inventory of
summer clothes and products before the
demand of the clothes is gone (summer is over).
Consumers will be less willing to pay high prices
for the clothes when they have a short time to
wear them.
Defining 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.
What’s A Supply For?
Complete on your own!
The owner of the store would want to sell his
computers in order to make a profit.
The owner would charge the highest price that he
thinks people would pay, in order to sell as many
computers as possible.
The owner might be willing to sell fewer computers if
they can make a greater profit selling fewer
computers.
What Supply is the Best
Supply?
Work in groups of 2-3
Car dealers would want to have enough cars to sell
to the people who wanted to buy them.
Dealers would NOT want to have so many cars,
however that would reduce the price of the cars to
sell them all.
Consumers would want the dealers to have too many
cars so that they could get them for cheap.
Tuesday November 1st
Bell Ringer: What does DEMAND mean?
Objectives: SWBAT explain how supply and
demand interact with price changes.
Homework:
How Much Demand?
Demand means the quantity of a good or service
that buyers are willing and able to buy at all
possible prices during a period of time.
Complete Handout INDIVIDUALLY
When will consumers
spend more money?
Demand for a good or service is strong
Really want to buy something as opposed to
simply thinking it might be a nice idea.
Airline Example
Airlines charge different prices for the same seat on
a flight, based on the price that consumers are
willing to pay.
Based on how far in advance you buy your ticket.
Last minute tickets are more expensive
Available Supply- Christmas, Thanksgiving
How can airlines influence the price of tickets?
Wants
Business want to make as much money as
possible
They want demand to be high so they can charge
a higher price.
Consumers want demand to be low, so that
prices will be lower.
Coca-Cola Experiment
(1999)
Coca-Cola products would be sold at varied
prices depending on what the temperature was
outside.
They believed people would pay MORE for Coke
when it was HOT outside, a price that they would
not be willing to pay when the temperature
cooled.
What do you think happened?
Coca- Cola Experiment
How would you feel as a customer if you knew CocaCola was charging more money when it was warmer
outside?
This experiment went horribly and Coca-Cola
immediately stopped the price fluctuation. They felt
it tarnished their reputation with their consumers.
BUT if airlines can get away with it why can’t Coke?
Quickwrite
Wednesday, November
2nd
Bell Ringer: Give me an example of Supply and
Demand
Objective: SWBAT develop a graphic organizer
displaying the interdependence between supply,
demand, and price.
Homework:
Supply, Demand, and
Price
Get into groups of two or three (at the most)
Read NY Times Article
Changing Your Price- answer handouts
Super Bowl Tickets
If consumers are willing to spend greater amounts of
money for a good or service the seller can charge a
higher price for the good.
What are some examples of this other than the Super
Bowl? What are some other situations where the
seller can mark up an event for a consumer?
How about a scenario when they need to lower the
price?
Market and Equilibrium
Answer questions on Market and Equilibrium Price
A place where multiple buyers and sellers interact
with one another.
Can be informal
Equilibrium- the price at which there are just enough
buyers willing to buy all the available tickets.
Homework
Complete the review sheet for tomorrow.
Thursday November 3rd
Bell Ringer: What outcome is expected when you
trade with someone?
Objective: SWBAT learn about trade and why
countries participate in it, understand the gains
available from trade.
Homework: Weekly Article Tomorrow
Introduction to the
Trading Game
When voluntary trade takes place both parties
benefit.
Voluntary trade allows individuals to obtain the
goods and services they desire and for socities
to specialize in the production of those goods
and services they are most efficient at
producing.
Trade and Export in Gov’t
Get into groups of 2
Assign one reader and one recorder
The reader will read the short article to the
recorder.
The recorder will write in 10 words what
Obama’s Trade Plan is/was.
Top Ten Countries the US
Trades with
Canada,
United Kingdom
China
South Korea
Mexico
France
Japan
Taiwan
Germany
Brazil
In order greatest to least
The Trading Game
Get into groups of 8-10
Move desks to opposite sides of the room
Assign on representative of your group as a
spokesperson, one as a recorder, and one as a
reader, the rest of you are to help the group in all
rounds, but you will not move out of your seats,
yell across the room, or blurt out decisions or
answers.
Round One
Receive your Gift Certificates
Individually rate each certificate 1-10
1 being little value; 10 being very valuable
Share out ratings
Mrs. Dillon will assign scores based on your
ratings
Friday, November 4th
Bell Ringer: Quickly form your groups so we can
continue with our trading game.
Objective: SWBAT participate in an interactive
trading game to illustrate that in voluntary
transactions both parties can gain.
Homework: Study for Quiz Monday, study guide
can be found on WIKI
Round Two
In your groups you have 5 minutes to trade your
gift certificates with one another.
After trading resumes, look at the gift certficates
you own, rate once again the value 1-10 of each
certificate
Share out values, Mrs.Dillon will calculate scores
Why do you think the value increased?
Round Three
You have 5 minutes to trade with ANYONE in the
room.
Assign Value
Total Values
As values increase that means GAINS in trade,
the broader range of choices made it possible to
achieve gains from trade.
Conclusion
This game simulated real life. Round Two simulated
US Trade, Round Three simulated World Trade.
When your options increased the score increased
because people felt they were gaining in their trades.
Countries that do not limit their trade tend to be
wealthier and their citizens have a higher level of
satisfaction because of the gains they realize from
trade.
Homework
Quiz Monday
15 questions-30 points
Study Guide is available on wikispace
You will not be able to use notes or the study
guide for the quiz
STUDY this weekend!