1. The Magic of Markets Mr. Barnett University High School

2. Marginal Utility  Marginal Utility – Extra Happiness or Satisfaction

3. So Magical  Why do people trade?  Take out a piece of paper  Take a look at your trade good…don’t let anybody else see it though…  Write down your initial satisfaction with your trade good  1 – Not satisfied  5 – Very satisfied

4. So Magical  Trade within your group  Re-Rate your satisfaction  1 to 5

5. So Magical  Trade within your double-sized group  Re-Rate your satisfaction  1 to 5  Rating should be the same if you did not trade

6. So Magical  ½ Class Trade  Re-Rate your satisfaction  1 to 5  Rating should be the same if you did not trade

7. So Magical  Whole class trade!  Final rating of satisfaction  1 to 5  Rating should be the same if you did not trade

8. Debriefing  How many people made trades?  What did you trade  Why did you trade  Which items were most popular?  Least popular?  Did anybody trade more than once? Why?  Did anybody not trade at all? Why?

9. Debriefing  How can we explain the change in marginal utility from round to round?  So, why do people trade?  What was the cost and what was the benefit of each trade?  How might involuntary exchanges impact overall happiness/utility?  If we observe twenty people buying items at a grocery store, what could we conclude about their gains and losses? Their wealth?  How could we increase overall happiness of our society even further?  Easiest (check), Star (best), Question Mark (Want more information/help)