KATHRYN GUSTAFSONFARMINGTON HIGH SCHOOL

KAT H RY N. G U S TA F S O N @ FA R M I N G T O N. K 1 2 . M I . US

H T T P : / / G U S O N O M I C S . W I K I . FA R M I N G T O N. K 1 2 . M I . U S/

Economics and Theme: Price Theory

Michigan Content Standards

1.3 Prices, Supply, and Demand Compare how supply, demand, price, equilibrium, elasticity, and

incentives affect the workings of a market.

1.3.1 Law of Supply – Explain the law of supply and analyze the likely change in supply when there are changes in prices of the productive resources (e.g., labor, land, capital including technology), or the profit opportunities available to producers by selling other goods or services, or the number of sellers in a market.

1.3.2 Law of Demand – Explain the law of demand and analyze the likely change in demand when there are changes in prices of the goods or services, availability of alternative (substitute or complementary) goods or services, or changes in the number of buyers in a market created by such things as change in income or availability of credit.

1.3.3 Price, Equilibrium, Elasticity, and Incentives – Analyze how prices change through the interaction of buyers and sellers in a market including the role of supply, demand, equilibrium, elasticity, and explain how incentives (monetary and non-monetary) affect choices of households and economic organizations.

WHAT WORKS?

Only 22 states require students to take a high school economics course

• National Council Economic Education (2011 Survey of States)

“Next to student ability, teacher ability may be the most important variable in the learning equation. Teachers’ knowledge of economics is positively related to students’ learning of economics”

• “What Works: A Review of Research on Outcomes and Effective Program Delivery in Precollege Economic Education”

• BY DR. MICHAEL WATTS, Director of the Center for Economic Education at Purdue University

See more at: http://www.councilforeconed.org/news-information/research/#sthash.9MfD6aQu.dpuf

MC3 INITIATIVE

EXCELLENT resources for teachers!

Atlasrubicon Unit II -Microeconomic Challenges

Theme Based Unit?

Given12 weeks Required 9th grade

classNot an “name your

theme” expert

InfluenceWilling to learn

along with my students

Willing to experiment

Wanting to make learning more meaningful

Michigan Social Studies Standards

General Social Science Knowledge – embedded in economics standards and expectations

Social Studies Procedures and Skills – embedded in economics standards and expectations

P1 Reading and Communication – read and communicate effectively.

P2 Inquiry, Research, and Analysis – critically examine evidence, thoughtfully consider conflicting claims, and carefully weigh facts

and hypotheses.

P3 Public Discourse and Decision Making – engage in reasoned and informed decision making that should characterize each

citizen’s participation in American society.

Common Core Literacy and Writing Standards

Key Ideas and Details CCSS.ELA-Literacy.RH.9-10.1 Cite specific textual evidence to support analysis of primary and secondary sources, attending to such features as the date and origin of the information.CCSS.ELA-Literacy.RH.9-10.2 Determine the central ideas or information of a primary or secondary source; provide an accurate summary of how key events or ideas develop over the course of the text.

Craft and Structure CCSS.ELA-Literacy.RH.9-10.4 Determine the meaning of words and phrases as they are used in a text, including vocabulary describing political, social, or economic aspects of history/social science.

Integration of Knowledge and Ideas CCSS.ELA-Literacy.RH.9-10.7 Integrate quantitative or technical analysis (e.g., charts, research data) with qualitative analysis in print or digital text.CCSS.ELA-Literacy.RH.9-10.8 Assess the extent to which the reasoning and evidence in a text support the author’s claims.CCSS.ELA-Literacy.RH.9-10.9 Compare and contrast treatments of the same topic in several primary and secondary sources.

Text Types and Purposes CCSS.ELA-Literacy.WHST.9-10.1 Write arguments focused on discipline-specific content.CCSS.ELA-Literacy.WHST.9-10.1a Introduce precise claim(s), distinguish the claim(s) from alternate or opposing claims, and create an organization that establishes clear relationships among the claim(s), counterclaims, reasons, and evidence.

• ELECTRICITY• FAST FOOD• OIL AND GAS• YOUR CHOICE

Theme Based Unit

Student Journal

Describe how your life would change if the price of gasoline increased to $12 a gallon. DETAILS!!!

No more extra curricularCar poolsWalking and riding bikes

(horses)Better healthBuy a Chevy VoltUse more ethanolTheft of gasolineEventually move closer to

parents workChange in focus of

parents work (automotive)

• STUDENT WRITING SAMPLE

• BUILD RELATIONSHIP WITH YOUR STUDENTS

• CONTENT IDEAS TO INCORPORATE INTO YOUR UNIT

OPPORTUNITY !

WH Y DO THE GA S P RIC ES GO UP ? DO WN ?WH AT P R ODU C TS DO W E M A K E W ITH PET RO LEU M ?

WHER E DO ES OU R EN ERG Y CO M E F RO M ?SHOU LD T HE GOV ER NM ENT SET P R IC ES F O R GA S?

HOW C A N W E EN C OU RA GE A M OR E EF FIC IENT U SE OF EN ER GY?WH AT IS T HE F UT UR E O F EL EC TR IC CA RS?

IS ETH A NO L A GO O D SU BST ITU TE FO R GA S?WHO IS O PEC ? OIL EM B A R GO ? IN T ’L TR A DE?

What should we investigate?

Basic FoundationWebsites

US Energy Information Administration

US Dept. of Energy

Articles/Radio/TV

Documentaries A Crude Awakening

Interview Assignment Describe how your life changed

during the 1970’s oil embargo.

When the price for oil reached an all time record of $120 a barrel last year (about $4.00 a gallon), did it change any of your current actions? If so, describe. If not, explain why.

We will be investigating and analyzing different hypotheses for rising gas prices in class. Why do you think the price of gasoline has increased dramatically over the past few years?

Incorporate family knowledge

Historical Events

Develop a hypothesis

Need for Stamina and Strength- Day 2

Extra Credit Opportunity!

Raffle Ticket for chance to win…

DataNumber of

“Students”Push -ups

Student Demand Data

Push-ups

My Classroom

GRAPH - Build with YOUR data

Price (P)

Demand (D)

Content Student trouble spots

Consumer perspectiveWilling and ableShapeInverse relationshipTotal market demandChange in Quantity

Demanded vs. Change in Demand

Determinants

Comfort with graphChange in QD vs.

Change in DFamiliarity with

determinants

DEMAND

* Take existing materials and tweak to your theme

PRACTICE HOMEWORK IS THEME BASED• ARTICLES

• WEBSITES

• DOCUMENTARY

• CURRENT DATA

Click icon to add picture

ALTERNATE TRANSPORTATION? – Day 3

Collect Data

$ per Hour Quantity of babysitters

SUPPLY – build with YOUR data

Price (P)

Quantity (Q)

Content Student trouble spots

Producer perspectiveWilling and ableShapeDirect relationshipTotal Market SupplyChange in Supply vs.

Change in Quantity supplies

Determinants

Producer perspective

Shifting of curve (increase to the right!)

Familiarity with determinants

SUPPLY

* Take existing materials and tweak to your theme

Click icon to add picturePratice homework is theme based• Articles

• Websites

• Documentary

• Alternative Resources

MARKET SIMULATION from FTE – day 4

Adapt to themeIn school field tripChoose student

helpersExplain rules brieflyPractice RoundDEBRIEF!!!!!!!

Data Secrets to success Illegalities

In the Chips — A Market in Computer Chips

Price Theory – Day 5

GRAPH!!!

Equilibrium price and quantity

Surplus Shortage Shifting of one curve Shifting of two curves

Student Practice is theme based

Make sure to try to answer focus question- Why are the gas prices so high?

Government Intervention – Day 6

Price Floors Minimum Wage

Price Ceilings Illegal Drugs Organs –see

Organ Theft - Not Just Urban Legend -- Health & Wellness -- Sott.net

Should the government enact legislation to keep gas prices low?

Elasticity – Day 7

DefineGraph with TREquations

Short run?

Long run?

Senate Hearing Project

Should the Government give automakers an emergency loan?

Should the Government set price limits on gasoline?

BEST RESOURCEOther theme based unit possibilities?

What works when YOU teach demand /supply /price theory?