Materials

Standards

Objectives

  • Explain demand and understand a demand curve

  • Explain supply and understand a supply curve

  • Analyze a market-equilibrium graph for a product

Key Concept

  • The forces of demand and supply create market prices for most products and resources in the US economy.

Vocabulary

Tier 2 Demand
Market
Money
Supply
Tier 3 Market Equilibrium
Test Words Implied Main Idea

Evidence-Based Reading

  • Fluency Echo Reading: Explain to students that when reading, we stress, or make louder, the most important words in each sentence. Tell students to listen to which words you stress as you read the first two paragraphs of ‘Markets’. Have them follow along in their books, underlining the stressed words. After you have modeled reading the paragraphs, have students read along with you, taking care to use correct sentence stress. You may wish to practice the reading several times.

21st Century Skill

  • Critical Thinking and Problem Solving: You may wish to extend this activity by having students consider the likelihood that sellers would reduce the price of the item sufficiently for them to buy it. Why do they think this is likely or not likely?

Writing Practice

  • Encourage students to reread the Market Equilibrium section and take notes before beginning to write their analyses. Tell them to review the sections on demand and supply as well. Discuss the causes and effects of price on demand and supply.

Before Lesson

Ask students to think about the prices of computers, smartphones, televisions, and other electronics. Ask: What did they cost a few years ago? What do they cost now? How many options are there when you go to buy one of these items today? How many options were there a few years ago? Have students speculate about the changes in availability and prices of these items and what might influence those factors.

Background

Tell students that in a capitalist system, demand and supply help answer three basic economic questions: what to produce, how to produce, and for whom to produce. Write these questions on the board and help students understand them by using an example, such as this: What to produce: frozen yogurt; how to produce: in a shop using.

Guided Practice

  • Markets
    • Demand and the Law of Demand
      • Demand Schedule and Demand Curve
    • Supply and the Law of Supply
      • Supply Schedule and Supply Curve
    • Market Equilibrium
    • Government Intervention

Core Skill

Understand the Implied Main Idea: Remind students that an implied main idea is still a main idea. Explain that looking at the details helps point to the implied main idea. Use students’ answers to the activity questions as the basis of a class discussion about the main idea of the paragraph.

Make Inferences: Tell students that making inferences often involves considering multiple perspectives on an issue. Thinking about how various entities or people might react to something can involve inference. You may choose to extend this exercise by having students research other price controls set by the US government.

Extension

Understand Visuals: Have students work in pairs to explain to one another the tables and curves in this lesson, including how they interrelate. Check students’ understanding of the graphics and of the concepts of supply and demand.

Develop a Logical Argument: Divide the class into two groups. Have one group investigate the arguments in favor of government price controls and have the other investigate the arguments against them. Tell both groups to cite evidence from both economic and social perspectives. Then moderate a class debate on the topic.

Lesson Review