Resources for Courses

Kit Kat Auction Resources for Courses

Teacher’s Instructions
Derive your first simple demand curve by auctioning off a Kit Kat.

Steps
• Draw up a demand schedule on the whiteboard

Price Quantity Demanded

10p
20p
30p
40p
50p
60p
70p

• Explain that the Kit Kat is available but it will only be released provided that payment is received.
Payment must be received, in cash, immediately
• Work through each price point and record the number of willing buyers. Students show a
willingness to purchase through raising a hand. Once they put their hand down they are no
longer willing to purchase
• Record the number of willing buyers at each price point
• To add spice continue until only one student is left
• The Kit Kat could be exchanged for cash ( I always refund the money) as it helps show effective
demand
• Use the demand schedule to plot a demand curve. It’s unlikely to be a straight line but that
doesn’t really matter at this stage.

Extension Tasks
• Consider what would happen if:
a there was a successful advertising campaign for Kit Kat
b there was a health scare for Kit Kat
c the demand curve was vertical
d the demand curve was horizontal