The document provides instructions for activities related to teaching supply and demand concepts. It includes prompts to sketch perfectly inelastic and elastic demand curves, provide examples of goods with elastic and inelastic demand, and give an example of the law of demand from personal experience. It also includes prompts for identifying how different parts of the supply and demand model (TRIBE) would change given scenarios impacting various markets like hotels, gasoline, spam, and potato chips.

1. On slates
1. Sketch a perfectly
ineastic demand
curve
2. Sketch a perfectly
elastic demand
curve
3. 2 examples of
goods/services with
elastic demand
4. 2 examples of
goods/services with
inelastic demand

2. On slates1. Give an example of the
law of demand from
your Spring Break.
Something you bought,
didn’t buy or witnessed
2. For each part of TRIBE,
identify a change to the
Miami hotel market.

3. Changes to demand relay race
Winning group get +5 Quantitative Easing
points
2nd place gets +3, 3rd gets +1
Stand up in line
Only talk to
next person

4. White boards
Which part of TRIBE will
change in the following
scenarios to the Tucson
gasoline market? & increase
or decrease
1. Summer vacation time
2. Used cars get more expensive
3. Alaskan oil spill, consumers think gas prices
will increase next month
4. Sun Tran rates increase by 10%
5. Tesla electric cars get cheaper
6. New freeway connects Eastside with rest of Tucson

5. White boards
Which part of TRIBE will
change in the following
scenarios to the Spam market
& increase or decrease?
1. US unemployment falls by 1%
2. Price of bacon drops by 5%
3. Restaurant prices increase after US minimum
wage increase
4. TUSD stops selling school lunches, students
must bring lunch from home
5. Median wage increases in Arizona

6. White boards
Which part of TRIBE will
change in the following
scenarios to the potato chip
market? & increase or
decrease
1. Americans try to eat healthier
2. Consumers think price of potatoes will
decrease next month
3. Hotdog prices plummet
4. Your school stops selling school lunches,
students must bring lunch from home
5. Population of US increases by 12%

7. White boards
Which part of TRIBE will
change in the following
scenarios to the potato chip
market? & increase or
decrease
1. Americans try to eat healthier
2. Consumers think price of potatoes will
decrease next month
3. Hotdog prices plummet
4. Your school stops selling school lunches,
students must bring lunch from home
5. Population of US increases by 12%

9. Bellringer
• In your notes, write the minimum per hour I
would have to pay you to clean up this yard.
Should take about 5 hours
Pretend there is no minimum wage and you could work for less than
$7.90

10. Graph workers on board
• Jumping jacks market

11. Law of Supply
• As the price of a good increases, producers will
produce more (,or try to) quantity. As the price of the
good decreases, producers will produce less quantity.
P Qs and P Qs
The supply curve is always
upward sloping
$
Q
S

12. For example….
• Average prices of
• Therefore…..

13. Graph one:
A Supply Curve
Price of
Widgets
Number of
Widgets
Sellers
Want to
Sell
$1.00 10
$2.00 40
$3.00 70
$4.00 140

14. Producer Surplus
• Difference between cost and sale price
• IOW: profit
• Sale: $15
• Cost: $10
• PS = $5

15. For example….

17. In your groups
• Choose either a computer company or a car
company
• Your boss wants your group to figure out how
to produce MORE of your goods per year
• Consider every factor of production (land,
labor, capital)

18. If price changes Q*supply,
What changes supply?

19. 4 Determinants of Supply
• Price of production + or –
• Resources
• Taxes
• regulation

20. 4 Determinants of Supply
• Expectations of future price
• If future P$ might rise, hold inventory
• If future P$ might fall, increase supply

21. 4 Determinants of Supply
• Sellers (increase or decrease)

22. 4 Determinants of Supply
• Technology

23. 4 Determinants of Supply
Mnemonic
• Price of Production
• Expectations
• Sellers (#)
• Technology
• PEST = supply determinants
• TRIBE = demand determinants

24. PEST Changes Assignment
With 1 partner, see #2
1. For each part of PEST, identify one positive and
negative change to your entrepreneurial idea
and sketch a correctly drawn graph
2. Find an article either on your phone or in a
financial magazine, write the headline, the
market, part of PEST that is changing and graph
it.

25. BR Full sheet
1. How many pairs of flip flops do you own?
2. What price did you or your parents pay for your favorites?
(estimate if you don’t remember) (If you don’t own a pair,
explain why)

26. Now we will learn where prices come
from

27. Trading Game
• Flip flop market
• Buyers maximize consumer
surplus
• Sellers maximize producer
surplus
• Whole $1 prices
• Top 2 players get 5
Quantitative Easing points

28. Supply/Demand game Closure
5. What happened to the equilibrium price in
the different rounds?
6. How would the price have changed if we
doubled the number of buyers?
7. How would the price have changed if we
doubled the number of sellers?
8. Did you like being a buyer or seller more,
explain why?

29. White boards: Bellringer
1. Which words would you
associate with demand?
2. Which words would you
associate with supply?

30. Diff between supply and Demand
Xbox 360 games
• Supply or demand change?
• Determinant
released

31. Diff between supply and Demand
Wheat
• Supply or demand change?
• Determinant
Locusts
Infest Kansas

32. Diff between supply and Demand
Mexican food
• Supply or demand change?
• Determinant

33. Diff between supply and Demand
airline tickets
• Supply or demand change?
• Determinant

34. Diff between supply and Demand
gasoline
• Supply or demand change?
• Determinant

35. Diff between supply and Demand
Demand increases, decreases or no change
Market: New Cars
Change: US government increases income tax rates

36. Diff between supply and Demand
Market: New Cars
Change: Price of
steel decreases
15 %

37. Diff between supply and Demand
Market: New Cars
Change: population of US increases by 6 %

38. Diff between supply and Demand
Market: New Cars
Change: US media reports next year’s car models
will be more expensive due to new
environmental laws

39. Diff between supply and Demand
Market: New Cars
Change: gasoline prices increase to over $4
gallon

40. Diff between supply and Demand
Market: Sun Tran bus rides
Change: Average Tucson gets a 2% raise

41. Diff between supply and Demand
Market: Sun Tran bus rides
Change: Population of Tucson decreases for fifth
straight year

42. Diff between supply and Demand
Market: Sun Tran bus rides
Change: Gasoline prices increase to $4

43. Diff between supply and Demand
Market: Smart phone apps
Change: prices of smart phones decreasing

44. Diff between supply and Demand
Market: Smart phone apps
Change: 10% increase in computer programming
majors

45. Diff between supply and Demand
Market: Smart phone apps
Change: Consumers think android apps will no
longer be free starting next month

46. Diff between supply and Demand
Red Roses
Market: red roses
Change: prices of chocolate decreases

47. Diff between supply and Demand
Red Roses
Market: red roses
Change: cost of fertilizer increases

48. Diff between supply and Demand
Red Roses
Market: red roses
Change: Its February 14

49. Diff between supply and Demand
Red Roses
Market: red roses
Change: Its February 16

50. Diff between supply and Demand
Office supplies
• Supply or demand change?
• Determinant

51. Diff between supply and Demand
New cars
• Supply or demand change?
• Unemployment rate rises

52. Diff between supply and Demand
Used clothing
• Supply or demand change?
• Unemployment rate rises

53. Diff between supply and Demand
Dog food
• Supply or demand change?
• Determinant

54. Diff between supply and Demand
Dog food
• Supply or demand change?
• Determinant

55. Diff between supply and Demand
Salsa
• Supply or demand change?
• Determinant

56. Diff between supply and Demand
Salsa
• Supply or demand change?
• Determinant

57. Diff between supply and Demand
Salsa
• Supply or demand change?
• Determinant

58. Diff between supply and Demand
Salsa
• Supply or demand change?
• Determinant

59. Diff between supply and Demand
Spurs Clothing
• Supply or demand change?
• Determinant

60. Diff between supply and Demand
Spurs Clothing
• Supply or demand change?
• Determinant

61. On slates
1. Where do you think
the price of
gasoline comes
from?

62. OIL!!!

63. Oil Drilling
Crude oil from
ground
Sent to refinery

64. Uses of Oil

65. 2011 Oil Consumption
Rankings (Source: CIA
FACTBOOK)
Amount (top to
bottom)
#1 United States:
19,150,000 bl/day
#2 European Union
13,680,000 bl/day
#3 China:
9,400,000 bl/day
#4 Japan:
4,452,000 bl/day
#5 India:
3,182,000 bl/day

68. Conclusion?

72. solve this problem?
• Constant supply of oil, high demand
• What to do? Substitutes?

73. Corn!
• US government
provides incentives
to grow corn for
fuel
• Recent regulation
has caused corn
prices to increase
since 2000
• If you were a
farmer, what
would you do?