It's About Supply and Demand

In this lesson, students watch an Instructional Television (ITV) video and participate in a simulation to learn about supply and demand and how those two forces affect price. The supply and demand simulation will also bring out the concept of self regulation. Students who want objects in high demand will have to decide if they are worth the price.

**Grade Level:**

Grades 9 to 12

**Time Allotment:**

Two 45 minute class periods

**Subject Matter: **

Law of Supply and Demand

Self Regulation

Needs and Wants

Linear Equations

**Learning Objectives**

**Students will be able to:**
- Explain the ideas of supply and demand.

- Use graphs and other tools to determine the impact of price on number of sales.

- Use the concept of self regulation in describing the difference between wants and needs.

**Standards:**

**McREL Economics Standard 3: Understands the concept of prices and the interaction of supply and demand in a market economy**

http://www.mcrel.org/compendium/Benchmark.asp?SubjectID=15&StandardID=3

1. Understands that the demand for a product will normally change (i.e., the demand curve will shift) if there is a change in consumers' incomes, tastes, and preferences, or a change in the prices of related (i.e., complementary or substitute) products

2. Understands that the supply of a product will normally change (i.e., the supply curve will shift) if there is a change in technology, in prices of inputs, or in the prices of other products that could be made and sold by producers

3. Understands that changes in supply or demand cause relative prices to change; in turn, buyers and sellers adjust their purchase and sales decisions

**McREL Self-Regulation Standard and Benchmarks (3rd Ed.)**

Standard 2: Performs self-appraisal

Level IV (Grade K-12)

http://www.mcrel.org/compendium/Benchmark.asp?SubjectID=23&StandardID=2

4. Performs analysis of employability

5. Understands career goals

6. Develops an inventory of wants versus needs

**NCTM Algebra Standard, Grades 9-12**

http://standards.nctm.org/document/chapter7/alg.htm

Represent and analyze mathematical situations and structures using algebraic symbols

Use symbolic algebra to represent and explain mathematical relationships.

- Use mathematical models to represent and understand quantitative relationships

Draw reasonable conclusions about a situation being modeled.

- Analyze change in various contexts

Approximate and interpret rates of change from graphical and numerical data.

This lesson was prepared by: Patrick Vennebush and Melissa Donohue