How would the demand and supply curves change as a result of the supply shock? Would the prices and quantity sold go up or down? The demand and supply curves are usually drawn on an X-Y graph with the quantity demanded or supplied on the X axis and the price on the Y axis.
Even young kids can understand the basic relationship between supply, demand and prices. Through simulations and discussions as well as real-world observation, kids can understand this core economic idea.
Simulation Games Creating a simulation of an economic system within a classroom is one of the best ways for kids to observe economic principles at work.
An example is The Story of Supply and Demand.
Give each student a coloring sheet that indicates what colors to use in each space, so students cannot choose to use different colors. All the students should have different coloring sheets.
Give each student a certain amount of play money. Tell the students that all of the coloring sheets require red, but there is only one red marker available. In addition, only one sheet requires brown, but there are several brown markers available.
Then auction off the markers. After each auction, give the students a few minutes to color, then hold another auction during which they can auction off the markers they have already used in order to obtain more markers. This activity will demonstrate the effects of too much supply and too much demand on price.
Stories There are many simple stories you can use to illustrate the concept of supply and demand. An example is "Tuma and the Earthen Jars of Water," a story about a man selling water to nomads in the desert.
Tuma finds more people who want water than he has jars to sell, illustrating an excess of demand. Tuma plans to sell the water for a high price, but instead the nomads steal his jars, illustrating violent responses to scarcity. Discussion Activities Once they understand the basic impact of supply and demand on price, kids can make predictions of how certain events would affect prices.
One way to discuss this that kids will enjoy is by looking at economic chain reactions and their potential effect on prices. For example, ask kids how an increased demand for candles would affect the price of crayons.
Since both are made of wax, the price of candles and crayons would both go up. Real-world observations Kids will enjoy applying the economic principles they've learned to real-world scenarios. One way to do this is by looking at historical examples when supply and demand changed price and asking kids to figure out why the price of something changed after a certain event.You get a movement along the demand or supply curve, when all factors affecting demand and supply are constant and ONLY the PRICE changes.
With regards to a shift, the rule to remember is: You get a shift of the demand or supply curve, when ANY ONE of the MANY FACTORS affecting demand and supply changes. This is a series of short classroom games that encourage students to apply the supply and demand model to labor markets.
This simulation demonstrates how the Fed can decrease or increase the money supply through open market operations, and how the banking system can create money in a fractional reserve system.
This classroom simulation.
Students will be presented with concepts related to supply and demand through a teacher- Tell students they will begin by learning about the force of demand and explain that market Demand Simulation One way to emphasize the law of demand (Slide 6). 5 d 3 table of contents 1. abstract 4 2. introduction 3.
conventional supply and demand introduction 6 demand 6 supply 8 interaction between supply and demand 9 4. Students will be presented with concepts related to supply and demand through a teacher- Tell students they will begin by learning about the force of demand and explain that market Demand Simulation One way to emphasize the law of demand .
Identify different economic concepts. 2.
Distinguish between macro and micro economics. We will be learning about supply and demand. What happens to the It is about businesses and how they work. It’s about making choices, sometimes very difficult ones. Supply and demand is a powerful thing; it can force you to go without, .