Economics Academy 101

Supply and Demand — The Super Bakery

Overview
This lesson is designed to help students examine the effects of supply and demand in a real industry. It is a culminating activity that asks them to apply what they know about supply and demand, acting like consultants who are examining a business to detect its reasons for success and predict its future. It may be used in conjunction with the Mountain Dew lesson, having two groups work in one classroom at the same time. It is not an introductory lesson and will work better with sixth grade students who have already learned and reviewed basic economics vocabulary.

Outcome
Students will understand the concepts of supply and demand.

Standards Addressed

Grade 5
Social Studies — Economics, Benchmark A
02. Explain that individuals in all economies must answer the fundamental economic questions of what to produce, how to produce and for whom to produce.

Social Studies — Economics, Benchmark B
03. Explain how education, specialization, capital goods and the division of labor affect productive capacity.

Social Studies — Economics, Benchmark C
05. Explain the general relationship between supply, demand and price in a competitive market.

06. Explain why competition among producers/sellers results in lower costs and prices, higher product quality and better customer service.

07. Explain why competition among consumers/buyers results in higher product prices.

Grade 6
Social Studies — Economics, Benchmark A
01. Explain how the availability of productive resources and entrepreneurship affects the production of goods and services in different world regions.

Social Studies — Economics, Benchmark B
05. Describe how supply and demand help to set the market clearing price for goods and services and how prices reflect the relative scarcity of goods and services.

Materials

Economics Glossary or Vocabulary Review Sheet from this guide
Super Bakery information sheet
Questions to Consider student handout

Procedure

Decide whether the lesson will be used in conjunction with the Mountain Dew lesson.
Decide whether the lesson will be approached with the whole class or in working teams.
Review the following concepts with the entire class:

Goods and services

Producers and consumers

Specialization and interdependence

Economic competition and entrepreneurship

What to produce, how to produce and for whom to produce

Supply and demand

Hand out the information sheet on the Super Bakery product. Additional research may be done by students, but it shouldn’t be necessary.
Hand out the Super Bakery — Questions to Consider sheet.
Students should be allowed time to digest the material on the information sheet and formulate answers to the questions.
Hold a presentation or discussion of student decisions, reporting as individuals or teams.

Evaluation
This can be handled with a formal test of review terminology, but the discussion and presentations can also be used to determine whether comprehension has taken place.

Rubric for Presentation

Category	20-16	15-11	10-6	5-0
Content	Shows a full understanding of the topic.	Shows a good understanding of the topic.	Shows a good understanding of parts of the topic.	Does not seem to understand the topic very well.
Comprehension	Student is able to answer accurately almost all questions posed by classmates about the topic.	Student is able to answer accurately most questions posed by classmates about the topic.	Student is able to answer accurately a few questions posed by classmates about the topic.	Student is unable to answer accurately questions posed by classmates about the topic.
Collaboration With Peers	Almost always listens to, shares with and supports the efforts of others in the group. Tries to keep people working well together.	Usually listens to, shares with and supports the efforts of others in the group. Does not cause conflict in the group.	Often listens to, shares with and supports the efforts of others in the group, but sometimes is not a good team member.	Rarely listens to, shares with or supports the efforts of others in the group. Often is not a good team member.
Preparedness	Student is completely prepared and has obviously rehearsed.	Student seems somewhat prepared but might have needed a couple more rehearsals.	Student is somewhat prepared, but it is clear that rehearsal was lacking.	Student does not seem at all prepared to present.
Stays on Topic	Stays on topic all (100 percent) of the time.	Stays on topic most (99 percent to 90 percent) of the time.	Stays on topic some (89 percent to 75 percent) of the time.	It was hard to tell what the topic was.