Lesson Plan: Supply & Demand - Economic Concepts (SS.3.3.3)

 

Lesson Plan: Supply & Demand - Economic Concepts (SS.3.3.3)

Subject: Social Studies/Economics

Grade Level: 3

CSO: SS.3.3.3: Students will explain how supply and demand affect the availability and price of goods and services.

Time Allotment: 45-60 minutes

Learning Objectives:

• Students will be able to define supply and demand in simple terms.
• Students will be able to explain how changes in supply and demand affect price.
• Students will be able to provide real-world examples of supply and demand.
• Students will be able to predict how changes in supply or demand might affect the price of a good or service.

Materials:

• Whiteboard or chart paper
• Markers
• Pictures or real examples of goods and services (e.g., apples, toys, video games)
• Optional: Play money, small prizes, or treats

Procedure:

1. Introduction (5-10 minutes):

• Begin by asking students what they know about buying and selling things. Have they ever wanted something that was sold out? Have they ever noticed the price of something change?
• Introduce the terms "supply" and "demand" in simple language.
  • Supply: The amount of something that is available. (Think: What the store has to sell.)
  • Demand: How much people want something. (Think: What people want to buy.)

2. Exploring Supply (10-15 minutes):

• Discuss factors that might affect the supply of a good or service.
  • Example: What might cause a store to have more apples? (Harvest season, a good growing year, a new shipment arrives)
  • Example: What might cause a store to have fewer apples? (Bad weather affecting the crop, a truck breaking down, the apples spoiling)
• Draw a simple graph on the board. Label one axis "Supply" and the other "Price."
• Explain that usually, when the supply of something goes up, the price goes down (stores might have sales to get rid of extra). When the supply goes down, the price goes up (because it's harder to get). Draw arrows on your graph to illustrate this relationship.

3. Exploring Demand (10-15 minutes):

• Discuss factors that might affect the demand for a good or service.
  • Example: What might cause more people to want a certain toy? (A popular TV show featuring it, it being close to the holidays, friends having it)
  • Example: What might cause fewer people to want a certain toy? (A new toy comes out, the toy breaks easily, people get bored with it)
• Draw a separate graph on the board. Label one axis "Demand" and the other "Price."
• Explain that usually, when the demand for something goes up, the price goes up (because stores know people really want it). When the demand goes down, the price goes down (stores might have sales to try to get people to buy it). Draw arrows to illustrate this relationship.

4. Combining Supply and Demand (10-15 minutes):

• Use real-world examples to illustrate how supply and demand work together.
  • Example: What happens to the price of a popular video game when it first comes out? (High demand, limited supply = high price) What happens a few months later? (Demand might decrease, supply increases = price might go down)
  • Example: What happens to the price of swimsuits in the summer? (High demand, good supply = reasonable price) What happens in the winter? (Low demand, supply might be higher than demand = prices go down/sales)
• Use pictures or real examples of goods and services. Ask students to predict what might happen to the price if the supply or demand changes.

5. Activity/Assessment (10-15 minutes):

• Option 1 (Simple): Give students scenarios (e.g., "A new movie is very popular," "A factory that makes a certain kind of candy closes down"). Have them draw arrows to show whether supply and demand will go up or down, and then predict what will happen to the price.
• Option 2 (More advanced): Divide students into small groups. Give each group a product (real or imagined). Have them create a short skit or presentation that shows how changes in supply or demand affect the price of their product.
• Option 3 (Interactive): Use play money. Set up a simple "store" with a few items. Have students "buy" and "sell" items, adjusting prices based on changes in supply and demand that you announce. (e.g., "A popular celebrity is seen wearing these shoes!" - demand goes up).

Differentiation:

• For students needing extra support: Provide sentence starters or graphic organizers to help them explain the concepts. Use simpler examples and focus on one concept (supply or demand) at a time.
• For students needing a challenge: Encourage them to think about more complex examples of supply and demand, such as how technology or trends can affect prices. Have them research a product and present its supply/demand story.

Closure:

• Review the key concepts of supply and demand.
• Ask students to think about how supply and demand affect their everyday lives.

Assessment:

• Observe student participation in discussions.
• Evaluate student responses to the activity/assessment.
• Collect and review student work (drawings, presentations, etc.).

Extension Activities:

• Have students look for examples of supply and demand in newspapers or online.
• Have students create their own "supply and demand" stories.
• Research different types of economic systems.

This lesson plan provides a framework for teaching third-grade students about the basic economic concepts of supply and demand. By using real-world examples and engaging activities, students can develop a strong understanding of how these forces affect the prices of goods and services.