1. The Prices Are Changing 7 th Grade SS: Week 9

2. Monday October 31st Bell Ringer: Have you ever noticed that department stores often sell summer clothes at lower prices as the summer draws to a close. Explain in 2-3 sentences why this might be the case. Objective: SWBAT explain the concepts of Supply and Demand, Market, and of equilibrium price. Homework: Weekly Article

3. Possible Reasons (BR) Stores may be trying to empty their inventory of summer clothes and products before the demand of the clothes is gone (summer is over). Consumers will be less willing to pay high prices for the clothes when they have a short time to wear them.

4. Defining Supply The amount of a good or service that producers are willing and able to offer for sale at each possible price during a given period of time.

5. What’s A Supply For? Complete on your own! The owner of the store would want to sell his computers in order to make a profit. The owner would charge the highest price that he thinks people would pay, in order to sell as many computers as possible. The owner might be willing to sell fewer computers if they can make a greater profit selling fewer computers.

6. What Supply is the Best Supply? Work in groups of 2-3 Car dealers would want to have enough cars to sell to the people who wanted to buy them. Dealers would NOT want to have so many cars, however that would reduce the price of the cars to sell them all. Consumers would want the dealers to have too many cars so that they could get them for cheap.

7. Tuesday November 1st Bell Ringer: What does DEMAND mean? Objectives: SWBAT explain how supply and demand interact with price changes. Homework:

8. How Much Demand? Demand means the quantity of a good or service that buyers are willing and able to buy at all possible prices during a period of time. Complete Handout INDIVIDUALLY

9. When will consumers spend more money? Demand for a good or service is strong Really want to buy something as opposed to simply thinking it might be a nice idea.

10. Airline Example Airlines charge different prices for the same seat on a flight, based on the price that consumers are willing to pay. Based on how far in advance you buy your ticket. Last minute tickets are more expensive Available Supply- Christmas, Thanksgiving How can airlines influence the price of tickets?

11. Wants Business want to make as much money as possible They want demand to be high so they can charge a higher price. Consumers want demand to be low, so that prices will be lower.

12. Coca-Cola Experiment (1999) Coca-Cola products would be sold at varied prices depending on what the temperature was outside. They believed people would pay MORE for Coke when it was HOT outside, a price that they would not be willing to pay when the temperature cooled. What do you think happened?

13. Coca- Cola Experiment How would you feel as a customer if you knew Coca- Cola was charging more money when it was warmer outside? This experiment went horribly and Coca-Cola immediately stopped the price fluctuation. They felt it tarnished their reputation with their consumers. BUT if airlines can get away with it why can’t Coke?

14. Quickwrite

15. Wednesday, November 2nd Bell Ringer: Give me an example of Supply and Demand Objective: SWBAT develop a graphic organizer displaying the interdependence between supply, demand, and price. Homework:

16. Supply, Demand, and Price Get into groups of two or three (at the most) Read NY Times Article Changing Your Price- answer handouts

17. Super Bowl Tickets If consumers are willing to spend greater amounts of money for a good or service the seller can charge a higher price for the good. What are some examples of this other than the Super Bowl? What are some other situations where the seller can mark up an event for a consumer? How about a scenario when they need to lower the price?

18. Market and Equilibrium Answer questions on Market and Equilibrium Price A place where multiple buyers and sellers interact with one another. Can be informal Equilibrium- the price at which there are just enough buyers willing to buy all the available tickets.

19. Homework Complete the review sheet for tomorrow.

20. Thursday November 3rd Bell Ringer: What outcome is expected when you trade with someone? Objective: SWBAT learn about trade and why countries participate in it, understand the gains available from trade. Homework: Weekly Article Tomorrow

21. Introduction to the Trading Game When voluntary trade takes place both parties benefit. Voluntary trade allows individuals to obtain the goods and services they desire and for socities to specialize in the production of those goods and services they are most efficient at producing.

22. Trade and Export in Gov’t Get into groups of 2 Assign one reader and one recorder The reader will read the short article to the recorder. The recorder will write in 10 words what Obama’s Trade Plan is/was.

23. Top Ten Countries the US Trades with Canada,ChinaMexicoJapanGermany United Kingdom South Korea FranceTaiwanBrazil In order greatest to least

24. The Trading Game Get into groups of 8-10 Move desks to opposite sides of the room Assign on representative of your group as a spokesperson, one as a recorder, and one as a reader, the rest of you are to help the group in all rounds, but you will not move out of your seats, yell across the room, or blurt out decisions or answers.

25. Round One Receive your Gift Certificates Individually rate each certificate 1-10 1 being little value; 10 being very valuable Share out ratings Mrs. Dillon will assign scores based on your ratings

26. Friday, November 4th Bell Ringer: Quickly form your groups so we can continue with our trading game. Objective: SWBAT participate in an interactive trading game to illustrate that in voluntary transactions both parties can gain. Homework: Study for Quiz Monday, study guide can be found on WIKI

27. Round Two In your groups you have 5 minutes to trade your gift certificates with one another. After trading resumes, look at the gift certficates you own, rate once again the value 1-10 of each certificate Share out values, Mrs.Dillon will calculate scores Why do you think the value increased?

28. Round Three You have 5 minutes to trade with ANYONE in the room. Assign Value Total Values As values increase that means GAINS in trade, the broader range of choices made it possible to achieve gains from trade.

29. Conclusion This game simulated real life. Round Two simulated US Trade, Round Three simulated World Trade. When your options increased the score increased because people felt they were gaining in their trades. Countries that do not limit their trade tend to be wealthier and their citizens have a higher level of satisfaction because of the gains they realize from trade.

30. Homework Quiz Monday 15 questions-30 points Study Guide is available on wikispace You will not be able to use notes or the study guide for the quiz STUDY this weekend!