Download Demand - North Clackamas School District

Small Group Problem Solving Activity
Role: Small Focus Group for Target Corporation:
Task: Create a Top 10 List of Trick or Treat Candy Items Demanded by consumers last year
during Halloween on your WHITEBOARDS
Goal: To match my list of “Top 10” Trick or Treat Candy demanded (purchased) last year during
Halloween.
Reward: “People respond to incentives in predictable ways!”: $500 prize per group!
JUST KIDDING- From “Freakonomics” we know that people would probably cheat then.
Prize: “Trick or Treat” candy for winning team and all the glory and honor bestowed to you for a
“Job well done!”
 Brainstorm a list of twenty items within your group on your whiteboards
 If you have a list greater than twenty, you must decide as a group which item (s)
to eliminate from your list
 Match my List: Total possible score 14 points
Top 10
Demand for Trick or
Treat Candy 2014
Top Ten Trick or Treat Candy Purchased by consumers at Halloween 2015!
1.
Skittles
2.
Snickers
3.
Starbursts
4.
M&Ms
5.
Nerds
6.
Tootsie rolls
7.
Sour Patch Kids
8.
Twizzlers
9.
Smarties
10. Candy Corn*
We will be using Cornell Note Taking
Format Today!
Smile and “Own the Day!
“Take
one step at a time to
Success in Economics class!”
• Check your Unit One
Assessment scores in Synergy.
I will Pass back your
• Circular flow Model is past due.
Unit One Assessments • You have all of Unit two to turn it in.
(One grade deduction already)
Today at the end of class!
Re-take window for Unit One
Assessments is now open!
Unit Two: Learning Objectives:
North Clackamas School District
Social Studies Priority Standards:
• HS.51 (A): Explain how supply and
demand represents economic activity
and describe the factors that cause them
to shift.
Lesson One: Daily Learning Target
I Can define and explain in writing the
following key Economic concepts:
Law of Demand
Substitution Effect
Income Effect
Lessons 1-3:
Why do roses cost more on Valentine’s Day?
Why do TV ads cost more during the Super Bowl
($4 million for 30 sec.) than during Nick at Nite reruns?
Why do hotel rooms in Sun Valley, Idaho cost
more in the winter than in the summer?
Why do surgeons earn more than butchers?
Why do pro basketball players earn more than pro hockey players?
“Econ, Econ”
Why do Christmas lights go on sale December 26th?
Why can I pay $40 to see Hall and Oates at the Schnitzer in 2014
When in 1984 it would have cost me $100 at Memorial Coliseum?
The answer to these and other economics questions boil down to the workings of
supply and demand – the subject of this chapter.
.
One out of every 8,000 high school basketball players
goes on to play in the NBA. Scouts looking for “rare talents” (scarcity)
Little Vincent”
[age 13]
.
Over time his work became
regarded as scarce, rare,
and valuable to art dealers
LOW SUPPLY (Rare!)
AND
BIG DEMAND-PRICE
GOES WAY UP!
“BO KNOWS ECONOMICS!”
D
$3
“JO”
“Mo”
“Bo”
D
+
$2
$3
+
=
$3
39 45
$3
[Total]
$2
$2
$2
35 40
D 1 D2
D
2630
100 115
And, what if the price of this product decreases from $3 to $2?
A point to point movement on the same “D” curve is a “Change in QD”
Demand
A relationship between
price and quantity
demanded in a given time
period, ceteris paribus.
What is “True” Demand?
• Willing and able to purchase a product at a
particular price.
• How many of you would like a Porsche [or like
vehicle]?
• How many of you are able?
• What’s the difference between willing and able?
• Idea of time and place – at this time, you may be
willing to buy a Porsche, but are not able,
therefore you do not have a “DEMAND” for a
Porsche
Markets
In a market economy, the price
of a good is determined by the
interaction of demand and
supply.
Why do we purchase more when a sale
occurs?
It’s obvious, isn’t it? Consumers
love low prices!
Look at this demand curve:
What happens to quantity purchased
as prices rise? Discuss and write an
Answer on your whiteboards
Law of Demand: As price goes down,
Quantity Demand goes up!
Law of Demand: As price goes up,
Quantity Demand goes down!
P QD
$5
4
3
2
1
10
20
35
55
80
$5
D
$4
$3
$2
$1
0 10 20
35
55
80
Quantity Demanded
…a specified time period
…other things being equal
QD – how much will be purchased at a specific price [& date].
The Demand For Ice Cream Cones
Quantity Demanded
$850
$260
QD1
QD2
6,000 600,000
.
“You can have it in
any color you want
as long as it’s black”
Production went from 6,000 a year to 600,000.
The Law of Demand
The law of demand states that
consumers buy more of a good
when its price decreases.
Conversely, consumers buy less of
a good when its price increases.
Consumers love low prices.
It really depends on the price, doesn’t it?
The Substitution Effect
The substitution effects demand….
The substitution effect occurs when a
consumer reacts to an increase in a
good’s price by buying less of that
good and more of a similar yet cheaper
good.
Example: When the price of orange
juice rises, consumers substitute
cheaper apple juice for orange juice.
D1 D2
D
P
Price
Of
7UP
Demand
for
Dr Pepper
 Lower prices increase consumers’
purchasing power.
 Higher income also can increase consumers
purchasing power.
 These factors influence demand and are known as
The “income Effect”
$1
D
QD1 QID2 QD3
Price
.
QD
Economists love graphs because graphs
provide easy understanding of economic
concepts.
If a picture is worth a thousand words,
a graph is worth even more.
A demand schedule records the quantity
demanded at various prices.
A demand schedule can easily be
converted to a demand curve.
Demand curve
Draw a Demand curve now. With a verical
“price” line and a horizontal “quantity line” and
a “0” at the axis. Do not draw numbers yet.
 Now create numbers along each axis for PRICE and
QUANTITY DEMANDED
 Plot numbers for Sony Blu-Ray Players at Best Buy
from this demand schedule.
Demand curve
Draw another Demand curve again. With a
verical “price” line and a horizontal “quantity
line” and a “0” at the axis. Again no #s yet.
Law of Demand
Remember: As price falls, the quantity
demanded increases. As the price rises, the
quantity demanded decreases
P
QD
Price For Bruno Mars
Ticket at the Moda Center
in Portland
Quantity of tickets (in
thousands) demanded at the
given price
$50
0
$40
4
$30
8
$20
12
$10
$0
16
20
Inverse (Negative) Relationship
Inverse - 2 variables move in opposite directions
$50
40
30
20
10
0
Demand for tickets
(thousands)
0
4
8
12
16
20
$50
a
b
c
d
e
f
TICKET PRICE (P)
TICKET
PRICE
40
30
20
10
a
b
In Economics the
independent variable
can be on either axis.
c
d
e
f
0
4
8
12
16
20
Demand for tickets IN THOUSANDS (Q)
Learning Objectives:
North Clackamas School District
Social Studies Priority
Standards:
Econ 59. Demonstrate the skills and
dispositions needed to be a critical
consumer of information.
Daily Learning Target
I Can use relevant clues to help identify the
economic principles useful in solving an
economic mystery related to Professional sports!
Exit Ticket 2-1:
Why Adults Are Paid Big Bucks to Play Games
If absent-see Mr. Kirby for this packet and EXIT TICKET
Lesson Purpose:
The purpose of this lesson is to think like economists.
You will sharpen and use your economic-reasoning
skills by using economic reasoning principles and
clues to solve an economic mystery related to:
PROFESSIONAL SPORTS
and BIG MONEY!
Why Adults Are Paid Big Bucks to
Play Games
Materials You will Need:
Group information Packet
Glue Stick
Scissors
Economic Mystery “Pyramid of Clues” Worksheet
Why Adults Are Paid Big Bucks to
Play Games
Step by Step Directions:
Go to “Activity 3.1 Mystery Clues” and cut out the
10 clues with your scissors.
Read through “Visual 3.1-The Guide to Economic
Thinking” (We have seen these ERPs before)
Re-visit Visual 3.2 “THE MYSTERY”
Lay 10 clues out on the table and try to arrange
them in a pyramid.
Mystery Clues: Activity 3.1
1. In addition to salaries from playing games,
athletes often earn money through
endorsements, speaking engagements,
signing autographs and other nongame
activates.
2. Few people possess the skills required to
throw big – league fast balls, deliver one –
handed jams and toss game – winning
touchdown passes.
3. Many professional athletes have gone to
college.
4. Coaches encourage competition among
their players as a way to bring out their best
performance
5. Fans will pay to see professional athletes
perform in person; they also tune in by the
millions to watch athletes on television.
6. When professional players strike, this is a
turn – off for many fans.
7. Like police officers and firefighters,
professional athletes risk serious injury.
8. The non labor costs of running a team
such as uniforms, equipment and airfares
have been increasing recently.
9. Famous athletes regularly appear on the
covers of popular magazines.
10. Some athletes return to college and
complete their education after they retire
from sports.
The Guide to Economic
Thinking: Visual 3.1
• People choose.
• People’s choices involve costs.
• People respond to incentives in predictable
ways.
• People create economic systems that influence
individual choices and incentives.
• People gain when they trade voluntarily.
• People’s choices have consequences that lie in
the future.
Why Adults Are Paid Big Bucks to
Play Games
Step by Step Directions:
Clues your group deems irrelevant should be at
the bottom/base of the pyramid.
The clue you believe is the most important in
solving the mystery should be at the apex/top.
Once you agree as a group, glue your clues on the
“Pyramid of Clues” worksheet.
Fill out the script. BE PREPARED TO SHARE OUT!
Rubric for “Economic Mystery” Activity
Name(s): ___________________________________________ Per.______
EXCEEDING
5
All group members
participated in problem
solving activity ALL OF
THE TIME. Worksheet
was complete: Clues
glued to pyramid. A
Detailed, creative
response/rationale
given. All members
shared out.
PROFICIENT
4
All group members
participated in problem
solving activity.
Worksheet was
complete: Clues glued to
pyramid. A Detailed,
response/rationale given.
All members shared out.
PROGRESSING
3.5
MOST group members
participated in problem
solving activity. Worksheet
was complete: Clues glued
to pyramid.
Response/rationale given.
All members shared out
EMERGING
3
MOST group members
participated in problem
solving activity.
Worksheet was
incomplete: Clues glued
to pyramid. Short
Response/rationale given.
All members did not
share out
Mystery Solution:
1. In addition to salaries from playing
games, athletes often earn money through
endorsements, speaking engagements,
signing autographs and other nongame
activates.
2. Few people possess the skills
required to throw big – league fast
balls, deliver one – handed jams
and toss game – winning
touchdown passes.
3. Many professional athletes have gone to
college.
4. Coaches encourage competition among their
players as a way to bring out their best
performance
5. Fans will pay to see professional
6. When professional players strike, this is a
turn – off for many fans.
athletes perform in person; they
also tune in by the millions to watch
athletes on television.
7. Like police officers and firefighters,
professional athletes risk serious injury.
8. The non labor costs of running a team such
as uniforms, equipment and airfares have been
increasing recently.
9. Famous athletes regularly appear on the
covers of popular magazines.
10. Some athletes return to college and
complete their education after they retire from
sports.
Rubric for “Economic Mystery” Activity
Name(s): ___________________________________________ Per.______
EXCEEDING
5
All group members
participated in problem
solving activity ALL OF
THE TIME. Worksheet
was complete: Clues
glued to pyramid. A
Detailed, creative
response/rationale
given. All members
shared out.
PROFICIENT
4
All group members
participated in problem
solving activity.
Worksheet was
complete: Clues glued to
pyramid. A Detailed,
response/rationale given.
All members shared out.
PROGRESSING
3.5
MOST group members
participated in problem
solving activity. Worksheet
was complete: Clues glued
to pyramid.
Response/rationale given.
All members shared out
EMERGING
3
MOST group members
participated in problem
solving activity.
Worksheet was
incomplete: Clues glued
to pyramid. Short
Response/rationale given.
All members did not
share out