1. B UY / SELL A BOX OF CHOCOLATES SES 2015 Term 1

2. Who are we?  Your class represents the market of buyers and sellers for chocolates

3. Instructions  Pick a card- DO NOT let others see it  Sellers (those with red cards) : sit down The number on your card is the minimum price you must sell at, since this is the cost of production. You have to try to sell at the highest possible price. (You can adjust prices as time goes along)  Buyers (those with black cards) : walk around Buyers: the number on your card is the money you have. You have to try to buy at the lowest price possible. (You can adjust prices as time goes along)  You can only perform 1 transaction.  Time limit for the transaction: 5 minutes

4. What your card means REDBLACK Seller- sit downBuyer- walk around CARDVALUE7$7 A$18$8 2$29$9 3$310$10 4$4J$11 5$5Q$12 6$6K$13 Note: we are playing for a minimum of 2 rounds

5. Example Student is a buyer. Student is a seller He has $11 His price to sell is $9 YOU MUST NOT BE EXPLICIT ABOUT ‘THE PRICE’ Take your time

6. Record Your Transaction  Record your transaction in the format below.  Remember that transactions are not necessary and you should take some time to figure out prices before you buy/sell. SellerMinimum Price (Red Card) Actual Price (Based on transaction) BuyerMoney Received (Black Card) Money Spent (Based on transaction) JohnRed Ace ?? $8TomBlack Q ?? $8

7. What your card means REDBLACK Seller- sit downBuyer- walk around CARDVALUE7$7 A$18$8 2$29$9 3$310$10 4$4J$11 5$5Q$12 6$6K$13 Note: we are playing for a minimum of 2 rounds

8. WORKSHEET TIME

9. ROUND 2! 5 minutes All buyers and sellers must transact!

10. To think about  The use of the Demand-Supply model in the real world  Behaviours of sellers and buyers  What are underlying assumptions?

11. More discussion questions  What is the rationality assumption?  Are these realistic? How might they limit the model?  What about other factors? And what about changes?