Plato

Day 2

Title: Supply and Demand

Grade Level: Fifth and Sixth Grade

Organization: Whole Group

Objectives: Students will be able to:

1. Define the terms supply and demand.

2. Identify what happens when demand exceeds supply.

3. Identify what happens when supply exceeds demand.

4. Explain how economic stability or affluence affects supply and demand.

Standards:

Production, Distribution and Consumption

Materials:

Poker chips

Prizes for each child in the class (i.e. candy, homework pass etc..)

Motivation:

Start day two with a reminder about the lesson from day one. For example, how money doesn't stretch as far as we like. To begin this lesson ask the students if they have ever seen, heard of or been to an auction. Depending on their response you may have to explain what an auction is, and what takes place at one. If you have a student who knows what an auction is, ask them to explain to everyone else what takes place at an auction. Then explain to the students that they are going to have an auction in the classroom.

Developmental Activities:

1. Students will be asked to pull select any number of poker chips out a bag from 1 to a handful.

2. Place a value on the tokens. (Make certain this is done AFTER students have already selected their tokens.) Blue= $10 Red=$5 White=$1 or you can select any amount you wish.

3. Pull out an object, students would desire to win and let the students know that they will only receive an "A" on this lesson if they own this selected item of which you happen to have EXACTLY one of. You will announce the bidding to be open at $10 and they may use their chips to purchase the item.

4. Continue auction until a student has paid a high price for this item and received it. Then pull out a large supply of the very same item