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Written by Joanne Gilbert

Economics-5th grade
Date: 11/10/04-11/12/04
Lesson 4: Prices (supply and demand)

Objective:
TSWBAT explain how prices are determined and what can affect them. TSWBAT use a(n) (Excel) chart to interpret data

Michigan Benchmark:
SS.IV.1.1: Explain why people must face scarcity when making economic decisions.
SS.IV.2.1: Distinguish between natural resources, human capital, and capital equipment in the production of a good or service.
SS.IV.4.1: Explain how prices are determined in a market economy and how they serve as a means of allocating resources.
Tech.2.LE.1: Interpret, analyze, and evaluate information with the assistance of technology.

NETS:
Prior to completion of Grade 5 students will:
1. Use keyboards and other common input and output devices (including adaptive devices when necessary) efficiently and effectively. (1)
2. Use general purpose productivity tools and peripherals to support personal productivity, remediate skill deficits, and facilitate learning throughout the curriculum. (3)
3. Use technology resources (e.g., calculators, data collection probes, videos, educational software) for problem solving, self-directed learning, and extended learning activities. (5, 6)

Materials:
All classes: Sale flyers, pencils, cookies, chart for overhead and for students, price questions packet
My class: computers with internet connection, Excel, lemonade sales chart

Anticipatory Set:
Come up with definitions for scarcity, consumer, and producer. Why do stores have sales?

Modeling Activity:
I will hold up the cookie. Who would buy this if it cost 10 cents? Count how many and enter number into chart. Who would buy it if it cost 15 cents? 25 cents? 50 cents? $1? What happens to the number of people willing to buy as the price goes up? If I charged 10 cents a cookie, it costs me 15 cents to make a cookie. Would it make sense for me to charge 10 cents? Why? What would my profit be per cookie if I charge 15 cents? 25 cents? 50 cents? Together we will make a supply and demand graph. For the supply column I will give the students the numbers. At $0.10, I will supply 5 cookies, at $0.15-10, $0.25-20, $0.50-25, $1.00-30. Then we will discuss the graph and how businesses would decide what price to charge.

Guided Practice:
Students will finish answering questions independently.

Independent Practice:
Students will play the online lemonade game for 10 days. As they play they are to keep track of the information on the printed chart. When done for 10 days, students will then input the data into an Excel spreadsheet. If there's time, we will create a graph using the program. (http://www.ae4rv.com/games/lemonade.htm)

Closure:
What did you learn about price today?

Assessment:
I will collect their class work.