Title: Introduction to Supply and Demand

Objective: Students will understand the basic concepts of supply and demand and how they interact in a market economy.

Materials: - Whiteboard or chart paper - Markers - Handout with examples of supply and demand curves (optional)

Procedure:

1. Warm-up (3 minutes)
   • Begin the lesson by asking students if they have ever experienced a situation where the price of a product increased or decreased.
   • Discuss their experiences and ask them to speculate on why the price changed.
2. Introduction to Supply and Demand (5 minutes)
   • Explain that supply and demand are two fundamental concepts in economics that determine the price and quantity of goods and services in a market.
   • Define supply as the quantity of a product that producers are willing and able to sell at a given price.
   • Define demand as the quantity of a product that consumers are willing and able to buy at a given price.
   • Emphasize that supply and demand interact to determine the equilibrium price and quantity in a market.
3. Supply and Demand Curves (5 minutes)
   • Draw a simple supply and demand curve on the whiteboard or chart paper.
   • Explain that the supply curve slopes upward, indicating that as the price increases, producers are willing to supply more of the product.
   • Explain that the demand curve slopes downward, indicating that as the price increases, consumers are willing to buy less of the product.
   • Discuss the concept of equilibrium, where the supply and demand curves intersect, and explain that this is the price and quantity at which the market is in balance.
4. Examples and Discussion (2 minutes)
   • Provide a few examples of changes in supply or demand and ask students to predict how these changes would affect the equilibrium price and quantity.
   • Encourage students to think critically and explain their reasoning.
5. Conclusion (2 minutes)
   • Summarize the main points of the lesson, emphasizing the relationship between supply and demand and how they determine prices in a market economy.
   • Ask students if they have any questions or if there is anything they would like to discuss further.

Note: This lesson plan is designed for a brief introduction to supply and demand. For a more in-depth understanding, additional activities and examples can be incorporated.