 Trade, the business of buying and selling goods, between regions was important in the transfer of ideas from the Near East (Middle East) to area on the edges of Europe (in the Mediterranean Sea)  This trade will have a profound effect on Europe in the short term and the larger world in the long term

 They traded:  Cloth  Dye (purple dye prized by kings, made from shellfish murex)  Glass  Pottery  Traded for:  Tin (Britannia)  Hides, ivory, ostrich feathers, and slaves (Africa)  Gold, precious stones, and spices (India)

 To trade, a merchant (a person who buys and sells goods for money) would travel long distances with their cargo in a caravan.

 It's hard to imagine our world without money, isn't it?  A long time ago there were no coins. There was no such thing as money.  Before money was invented people had to get their food, clothing and other needs by trading things.

 There is a special name for this kind of trading. The name is barter.  Bartering is the exchange of goods and services without the use of money.

 People traded some of the things they didn't need for things they wanted or needed. Even then people had different jobs and skills. The good hunter might trade 10 rabbits to the carpenter for the carpenter's promise to fix his roof.

 What happened when you had something to trade but nobody wanted it?  What happened when the traders couldn't agree on what was a fair trade?

 Goal: To end up with ONE Eagle buck only when time is called. This is NECESSARY for your survival. Barter and trade your items to:  Have at least 1 eagle buck  Get any additional items you may want  Items up for barter:  Lots of eagle buck  Candy  Various toys and trinkets  Student item from home

 Each person is going to get a bag.  All Eagle Buck  Candy and Eagle Buck  All candy  1 or 2 pieces of candy  Student item from home and eagle buck or candy

 Everyone must show decorum, so there is no running in the market place.  In order for everyone to hear clearly to make a trade, there is no shouting in the market place.  You may only trade with one person at a time. You may not approach a person who is already engaged in barter.  All townsmen are worthy of respect. Anyone trading in our market must show respect in their voice and words to others.  As long as the market is officially open, you may continue to trade if you wish. You can make as many trades as you want.  The governor will settle all disputes. The governor’s decision is final.  If the sun sets and you have not made a trade, the market is still closed, and you may keep the item you brought.  When the market closes, you are to bring whatever items you have back to your desk and sit down.

 How did it go during the activity today? Did you get what you wanted? Why or why not?  What problems did you experience while bartering?  What kinds of problems can you predict ancient people had with bartering?  What solution did ancient people have to the problems of bartering?

 Because beads broke and goods often spoiled, people began using metal for money. They used copper, iron, bronze, gold and silver. Metal wouldn't get sick, spoil, or break.  This developed a MONEY ECONOMY, which is a system or economic life in which money replaces barter in the exchange of goods.

 Supply is how much of something is available.  Demand is how much of something people want.

If more people want something, they will be willing to pay more for it. A good example is the newest basketball shoes. Everybody wants them, and they will be willing to pay more than they normally would to get them. The demand goes up. Why? Because more people want them. The price also goes up. Why? Because the seller knows he or she can get more money for the product because it is in demand.

In the same way, the price will go down when the demand goes down. When the new style of basketball shoes comes out, everyone wants the new shoes. The old shoes don't seem so new anymore. The seller still wants to sell those older shoes, since he or she has a lot still in stock. So, the price goes down. Why? The seller hopes that people will be willing to buy the older shoes at a lower price. After all, the older shoes aren't that much older or worse than the brand new shoes.

 Explain how was the activity we did was an example of supply and demand?