Economics

Proficiency Statements and Indicators:

Analyze the role that supply and demand, prices, and profits play in 

determining what is produced and distributed in a market economy.

• Demonstrate how supply and demand determine equilibrium price
  and quantity in the product, resource, and financial markets.
• Identify factors that cause changes in market supply and demand.
• Apply the laws of supply and demand in specific situations.
• Demonstrate how government wage and price controls create
  shortages and surpluses.
• Explain the functions of profit in a market economy.
• Use the concepts of price elasticity of demand and supply to explain and predict changes in quantity as price changes.
• Explain how consumers ultimately determine what is produced
  in a market economy (consumer sovereignty).

Sample Student Activities/Projects:

• Collect newspaper articles which relate to changes in supply and
  demand, and predict changes in prices, output and employment.
• Conduct a market survey in their school for a particular soft drink.
  Graph the demand for the drink and determine the elasticity of demand
  at different prices.
• Write a report on the history of minimum wage legislation. Identify who
  benefits and who loses from increases in the minimum wage.
• Brainstorm why certain products are in demand. Student groups then
  create a class presentation concerning a specific product.
• Auction a cake or candy bar to demonstrate how equilibrium prices are
  determined.
• Research the prices of new cars during the last 100 years. Identify factors
  of supply and demand which influence the price of cars. Note changes in the
  value of a dollar.
• Use supply and demand graphs to illustrate how changes in supply and
  demand will affect equilibrium price and quantity in specific markets.
• List and give examples of various types of marketing activities that firms
  use to increase demand. Discuss the effectiveness of each type of activity.

Market Structure