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Aim of Lesson:
The aim of this lesson is to introduce the students to the topic of markets and how markets work
using the law of demand and the law of supply.
Objective of Lesson:
To define markets
To explain what markets provide
Examine the way in which markets work
To define the law of demand
To define the law of supply
Identify what happens when demand exceeds supply
Identify what happens when supply exceeds demand
Explain how supply and demand affects choices
To illustrate how markets and the law of demand and supply operate through class
activity
Materials Used:
Whiteboard
Overheads
Textbook
Tokens for bidding
Chocolate bars
Explain to the students that every market works through the interaction of supply and
demand. Explain the following points to the students
When discussing the law of demand for a good we mean the quantity consumers are will
to buy at different prices
When discussing the law of supply, we mean the quantity that producers would be willing
to make available at different prices
A market works on the principle that there is some price that satisfies both consumers and
producers. Emphasise to the student that this point is extremely important to know and
understand.
At this point ask the students if they have any questions and answer any that are posed
Examine the situation from the view of the consumer and from the view of the producer
Next consider the situation from the point of the producer – Supply
Supply can be defined as follows:
If price rises, quantity supplied rises and if price falls, quantity supplied
falls
Aim of Lesson:
The aim of this lesson is to incorporate the information students have learned from the topic
‘supply’, into workbook, exam and life related questions. Students should confidently and
competently recognise and understand the factors that affect the supply of a good and relate it to
life examples.
Objective of Lesson:
Recap and discuss supply curves which are exceptions to the rule of supply
Recap and discuss the 5 factors affecting the supply of a good
Comprehension of the details involved in each factor
Understanding of the shifts in supply curve – both in the negative effect and positive
effect
Efficiently answer questions on supply that are workbook related, exam related and
related to their daily lives
Encourage an appreciation of economics throughout the class
Materials Used:
Whiteboard
Overheads
Textbook
PowerPoint presentation
Products: salt + pepper, potatoes + pasta, beans + peas, coffee + hot chocolate
Homework sheet
Ask the students to explain the basic law of supply that relates to most products, eliciting
the following: as price increases, supply increases (P increases = S increases). If price
decreases, supply also decrease (P decreases = S decreases).
Question from homework should illustrate how the law of demand operates. Correct this
question according to the law of supply.
Next examine the 3 exceptions to the rule of Supply. These exceptions are put into
practice with homework questions
The next section of the lesson will recap the factors that affect the supply of a good.
There are 5 overall factors to consider.
Ask the students to list these 5 factors
Ask the students to briefly explain each of the 5 factors clearly and with good explanation
and ask for examples to support their explanations.
Supply of a good depends on the factors outside the control of the firm
o Factors that are not planned in advance by the producer
o Favourable unplanned factors
E.g. favourable weather conditions
The final part of the lesson will involve group work and a group exercise.
Students will be split into groups of 5 (4 groups all together)
A team leader will be designated to keep the worksheet safe and complete the analysis in
writing on behalf of the team
Give each group 2 related products.
The products are as follows:
Salt + pepper
Pasta + Potatoes
Beans + Peas
Coffee + hot chocolate
With these products give them a worksheet with a certain amount of information (see
attached)
The group will be required to discuss the products and information supplied and plot their
analysis on a supply curve
As the students are undertaking this exercise, the teacher will walk around the classroom
This is to ensure teacher is available for questioning by the students and also to ensure
management of the group work and maintain discipline
If time allows discuss the analysis from each team. Otherwise begin the next lesson with
their analysis and suggestions
Aim of Lesson:
The aim of this lesson is to continue the topic of with the topic of markets, explaining how the
laws of demand and the law of supply apply to the various markets.
Objective of Lesson:
Materials Used:
Whiteboard
Overheads
Textbook
Newspaper clipping handout
PowerPoint presentation
Index price cards
Ask students to close their workbooks and test books for the time being so that the class
may examine markets in greater detail
Explain to the students that there are 3 categories of market in our economies. These are
as follows:
1. Factor Markets
2. Intermediate Markets / Producer Markets
3. Final Markets / Goods Markets
Examine each of these markets in detail individually
Factor Markets:
A factor market is a market where a factor of production is bought and
sold
The buyer is the entrepreneur who wants to use the factor in the
production of goods and services
The seller is the owner of the factor of production in question
Price is determined in the same way – this represents income to the owner
of the factor of production
Rent = income to the owner of the land
Wages = the reward to the supplier of labour
Interest = the return to the owner of capital
Intermediate Markets / Producer Markets
An intermediate market is one where output (i.e. raw material) is sold to
be used as input in the production of another good
Example: the output of the steel industry is bought by car manufacturing
firms in the making of cars
Final Markets / Goods Markets
Final markets are markets that deal in goods and services that give
consumers utility and for which they are therefore prepared to pay a price
Examples: food, drink, clothing, furniture, household appliances
For each market, elicit as many examples as possible of each market and draw these on
the whiteboard
At this point ask the students if they have any questions and answer any that are posed
Re-explain to the students that every market works through the interaction of supply and
demand.
Ask the students what we mean when discussing the law of demand for a good eliciting
the following: ‘we mean the quantity consumers are willing to buy at different prices’
Next ask the students what we mean when discussing the law of supply, eliciting the
following: ‘we mean the quantity that producers would be willing to make available at
different prices’
Next recap on the Demand Schedule and Demand Curve. The teacher wants to ensure
that students understand this extremely well as it is vital for many areas of economics
Put an overhead on the projector illustrating the market for tea in Ireland – demonstrating
the relationship between price and quantity
This list will show the quantities that would be demanded at number of different prices.
Ask the students what this table is called eliciting the following: a demand schedule
Examine this table as a class, and highlight to each student that quantity demanded and
sold will increase as price decreases
Then explain to the students that demand can also be illustrated graphically. Ask the
students what this graph is called, eliciting that this is known as a demand curve
Then show an overhead of the demand curve for the table previously discussed on the tea
market in Ireland.
Explain the Demand Curve to the students and instruct them to take it down in their copy
books
Staying with the examples of the tea market in Ireland, look at the supply schedule of tea
and look at the relationship between price and quantity
Then present this information on a supply curve
Discuss as a class the differences between demand and supply
For the final part of class, carry out a class activity as follows:
Students will be asked to think of three items on their desks and to secretly set a price for
each one of them on the index card that will be handed out the each one.
They will then fold their index cards so it can stand upright on their desks
Students will then be instructed to place their items by their price list
Students will then be invited to go ‘shopping’ and check out all the prices in the ‘shop’
Lead the students into discussion asking questions such as the following:
Now that you can see how other merchants priced their items, how will it
effect your pricing of the same item
Were there some items that would be in high demand because of their low
supply?
How might that effect pricing?
Students may want to stock their ‘shelves’ differently after doing some comparison-
shopping and seeing the availability of certain items.
Give the students the opportunity to price another 3 items of their choice and discuss their
changes and why they were made.
Aim of Lesson:
The aim of this lesson is to introduce the students to the topic of markets and how markets work
using the law of demand and the law of supply.
Objective of Lesson:
To define markets
To explain what markets provide
Examine the way in which markets work
To define the law of demand
To define the law of supply
Identify what happens when demand exceeds supply
Identify what happens when supply exceeds demand
Explain how supply and demand affects choices
To illustrate how markets and the law of demand and supply operate through class
activity
Whiteboard
Overheads
Textbook
Tokens for bidding
Chocolate bars
Explain to the students that every market works through the interaction of supply and
demand. Explain the following points to the students
When discussing the law of demand for a good we mean the quantity consumers are will
to buy at different prices
When discussing the law of supply, we mean the quantity that producers would be willing
to make available at different prices
A market works on the principle that there is some price that satisfies both consumers and
producers. Emphasise to the student that this point is extremely important to know and
understand.
At this point ask the students if they have any questions and answer any that are posed
Examine the situation from the view of the consumer and from the view of the producer
Next consider the situation from the point of the producer – Supply
Supply can be defined as follows:
If price rises, quantity supplied rises and if price falls, quantity supplied
falls
Put these statements on the overhead projector so students can read the statements again.
Explain that Supply is very important to know as it will help us understand how
producers operate in markets
Staying with the examples of the tea market in Ireland, we will look at the supply
schedule of tea and look at the relationship between price and quantity
Then present this information on a supply curve – the economic method in which we
view supply
As a class discuss the differences between demand and supply
Continue with explaining the term excess supply
Excess supply exists when quantity supplied is greater then quantity demanded
Producers have no option but to lower the prices
S > D = P decreases
Continue with explaining the term excess demand
Excess demand exists when quantity demanded is greater then quantity supplied
In this case consumers would compete against each other for the available supply and
price would be forced to increase
D > S = P increases
Next explain the term Equilibrium Price
This is where supply = demand. By equilibrium we mean a situation from which there is
no tendency to change
If the price on the market e.g. tea is above the equilibrium price, there will be a
downward pressure on price. Quantity supplied will exceed quantity demanded and
producers will lower their price to get rid of surplus stock
If the price on the market e.g. tea is below the equilibrium price, there will be an upward
pressure on price. Quantity demanded will exceed quantity supplied and consumers will
Aim of Lesson:
The aim of this lesson is to incorporate the information students have learned from the topic
‘supply’, into workbook, exam and life related questions. Students should confidently and
competently recognise and understand the factors that affect the supply of a good and relate it to
life examples.
Objective of Lesson:
Recap and discuss supply curves which are exceptions to the rule of supply
Recap and discuss the 5 factors affecting the supply of a good
Comprehension of the details involved in each factor
Understanding of the shifts in supply curve – both in the negative effect and positive
effect
Efficiently answer questions on supply that are workbook related, exam related and
related to their daily lives
Encourage an appreciation of economics throughout the class
Materials Used:
Ask the students to explain the basic law of supply that relates to most products, eliciting
the following: as price increases, supply increases (P increases = S increases). If price
decreases, supply also decrease (P decreases = S decreases).
Question from homework should illustrate how the law of demand operates. Correct this
question according to the law of supply.
Next examine the 3 exceptions to the rule of Supply. These exceptions are put into
practice with homework questions
Ask the students to explain the first exception to the law Supply. That exception is as
follows:
Exception 1 = Perfect Inelastic Supply
o If the quantity supplied is fixed, so that an increase in price will not bring forth
further suppliers and a fall in price will not result in less being supplied e.g. fresh
fruit, vegetables, open-air markets
Next complete homework question in class so that this issue can be illustrated in
economic terms on a graph.
The students will be asked to explain the shape of the graph and a student will draw this
on the whiteboard
Students will then explain the answer to the questions with reference to Exception 1
Next ask the students to explain the second exception to the law of supply. This exception
is as follows:
Exception 2 = a minimum price is established below which supply will be zero
o Suppliers are able to impose a minimum price (P1). At prices below P1 nothing
will be supplied. At prices above P1 the curve will revert back to its normal
upward slope as increase in prices = increase in supply
o E.g. trade union where there is a minimum wage
Next complete homework question in class so that this issue can be illustrated in
economic terms on a graph.
The students will be asked to explain to me the shape of the graph and a student will draw
this on the whiteboard
Students will then explain the answer to the questions with reference to Exception 2
Next ask the students to explain the final exception to the law of supply. This exception is
as follows:
Exception 3 = the firm reaches its maximum output
The next section of the lesson will recap the factors that affect the supply of a good.
There are 5 overall factors to consider.
Ask the students to list these 5 factors
Ask the students to briefly explain each of the 5 factors clearly and with good explanation
and ask for examples to support their explanations.
The factors that affect the supply of goods are as follows:
Supply of a good depends on the factors outside the control of the firm
o Factors that are not planned in advance by the producer
o Favourable unplanned factors
E.g. favourable weather conditions
Causes a shift in the supply curve to the right = increase in supply
o Unfavourable unplanned factors
E.g. a strike
Causes a shift in the supply curve to the left = decrease in supply
When students have completed listing and explaining the 5 factors affecting supply the
teacher will write the supply function on the whiteboard as follows:
Sy = f(Py, Pr, C, T, U)
Continue with the homework.
Question 4 incorporates all of the factors discussed above.
Put up an overhead of a supply curve and for each point on question 4 the students will
inform the teacher what happens to the supply curve and teacher will amend it with a
whiteboard marker as required.
Briefly recap the concept of supply using a PowerPoint presentation which will illustrate
the shifts in the supply curves from a negative and a positive perspective.
The final part of the lesson will involve group work and a group exercise.
Students will be split into groups of 5 (4 groups all together)
A team leader will be designated to keep the worksheet safe and complete the analysis in
writing on behalf of the team
Give each group 2 related products.
The products are as follows:
Aim of Lesson:
The aim of this lesson is to continue the topic of with the topic of markets, explaining how the
laws of demand and the law of supply apply to the various markets.
Objective of Lesson:
Materials Used:
Whiteboard
Overheads
Textbook
Newspaper clipping handout
PowerPoint presentation
Index price cards
Introduction:
.
Ask the students to take out the newspaper clipping from the previous lesson.
This clipping was on the product Playstation 3 which was not available in Europe until
March 2007.
A British man paid over €11,000 for an advance copy of the product. This is a great
example of demand and supply that the students can relate to.
Ask students to close their workbooks and test books for the time being so that the class
may examine markets in greater detail
Explain to the students that there are 3 categories of market in our economies. These are
as follows:
4. Factor Markets
5. Intermediate Markets / Producer Markets
6. Final Markets / Goods Markets
Examine each of these markets in detail individually
Factor Markets:
A factor market is a market where a factor of production is bought and
sold
The buyer is the entrepreneur who wants to use the factor in the
production of goods and services
The seller is the owner of the factor of production in question
Price is determined in the same way – this represents income to the owner
of the factor of production
Rent = income to the owner of the land
Wages = the reward to the supplier of labour
Interest = the return to the owner of capital
Intermediate Markets / Producer Markets
An intermediate market is one where output (i.e. raw material) is sold to
be used as input in the production of another good
Example: the output of the steel industry is bought by car manufacturing
firms in the making of cars
Re-explain to the students that every market works through the interaction of supply and
demand.
Ask the students what we mean when discussing the law of demand for a good eliciting
the following: ‘we mean the quantity consumers are willing to buy at different prices’
Next ask the students what we mean when discussing the law of supply, eliciting the
following: ‘we mean the quantity that producers would be willing to make available at
different prices’
A market works on the principle that there is some price that satisfies both consumers and
producers. Emphasise to the student that this point is extremely important to know and
understand.
At this point ask the students if they have any questions and answer any that are posed
Examine the situation from the view of the consumer and from the view of the producer
using different examples
For the final part of class, carry out a class activity as follows:
Students will be asked to think of three items on their desks and to secretly set a price for
each one of them on the index card that will be handed out the each one.
They will then fold their index cards so it can stand upright on their desks
Students will then be instructed to place their items by their price list
Students will then be invited to go ‘shopping’ and check out all the prices in the ‘shop’
Lead the students into discussion asking questions such as the following:
Now that you can see how other merchants priced their items, how will it
effect your pricing of the same item
Were there some items that would be in high demand because of their low
supply?
How might that effect pricing?
Students may want to stock their ‘shelves’ differently after doing some comparison-
shopping and seeing the availability of certain items.
Give the students the opportunity to price another 3 items of their choice and discuss their
changes and why they were made.