Economic Environment
CHANGE SECTION
Learning Goal:
Students will understand what economics is and why it’s important
Students will know the difference between economic systems
Students will understand supply, demand, and equilibrium price
Students will understand why and how the health of the economy is measured
In class, we'll cover the following sections from our book using the links and materials below.
In our last section, we saw how the economic environment was one of the external forces that can impact business. We want to have a basic understanding of economics.
We'll number off the class and every other person will lose their chair. Use this collaborative link to come with ideas on how our limited chairs should be distributed.
An economist might suggest that we use a [sealed-bid auction].
This activity helps introduce the idea of scarcity, which is an important concept in the study of economics. We'll check out a definition of scarcity and video on this page.
Our book defines economics as, "... the study of how humans make choices under conditions of scarcity."
We'll watch the video linked above from Crash Course Econ that introduces economics, scarcity, and opportunity cost. Talk with someone around you about an opportunity cost you have or may experience. Be ready to share. We will use these links for my example of an opportunity cost when I visit my hometown.
Demand, Supply, & Equilibrium Price
We will watch this video that gives a quick introduction to supply and demand. I'll share another example about cheese a friend of mine experienced when teaching on a tropical island in the Pacific Ocean.
When we are talking about demand, think of it from a consumer's perspective. What is demand? What is the law of demand? Click on the link above to learn what your book has to say. Talk with someone close by about an example of the law of demand (not in your book). Be ready to share.
Think about supply from the perspective of the supplier or business. What is supply? What is the law of supply? Click on the link above to learn what your book has to say.
When are both consumers and suppliers happy? We'll use the link above to learn about equilibrium, surplus, and shortage in the hotdog vendor business. Talk with someone close by about an example of surplus and shortage. Be ready to share.
Together in class, we'll watch this video to help reinforce the concepts covered above. YOUTUBE LINK
Something is happening to supply or demand and price.
If price increases, demand (ex. customer want/need) decreases. For example Netflix fee increase.
If price decreases, demand (ex. customer want/need) increases. For example sale items.
If supply (ex. competition) increases, price decreases (surplus). For example clearance items.
If supply (ex. competition) decreases, price increases (shortage). For example popular Christmas toy.
The Challenge - Supply/Demand Comic
Can you explain a concept to a child? You might need to use the Feynman Technique.
Use this document to demonstrate your supply and demand knowledge by creating a comic a child could understand. We will review the techniques, tools, and requirements together.
CHANGE TO QUIZIZZ ON SUPPLY/DEMAND??