Understanding Supply and Demand

Objectives: 

Understand the basic concepts of supply and demand. 

Analyze how changes in supply and demand affect market outcomes. 

Apply the concepts of supply and demand to real-world situations. 

Materials: 

Whiteboard and markers 

Handout on supply and demand basics 

Worksheet with practice problems 

Game of Thrones clip (Season 1, Episode 4). Link here

Procedures: 

Introduction (10 minutes) 

  • Ask students if they have ever experienced a situation where they wanted to buy something but it was sold out or too expensive. 
  • Introduce the concept of supply and demand and explain that it is the foundation of how markets work. 
  • Distribute the handout on supply and demand basics. 

Instruction (25 minutes) 

  • Discuss the basic definitions of supply and demand, and how they interact to determine the equilibrium price and quantity in a market. 
  • Use the whiteboard to draw a supply and demand graph and demonstrate how changes in either supply or demand can affect the equilibrium point. 
  • Show the Game of Thrones clip and explain how it illustrates the concept of an increase in price when demand exceeds supply. 
  • Discuss other examples of peak pricing, such as big sporting events and ride-share apps during peak times. 

Application (20 minutes) 

  • Distribute the worksheet with practice problems, which asks students to analyze different scenarios and identify the effects on supply, demand, price, and quantity. 
  • After completing the worksheet, have students share their answers with the class and discuss their reasoning. 

Conclusion (5 minutes) 

  • Summarize the key takeaways of the lesson, emphasizing the importance of understanding supply and demand in making economic decisions. 
  • Ask students if they have any questions or if there are any areas they would like to explore further.