Unit 2: Lesson 11 - Do Prices Matter to Consumers?

This lesson demonstrates how people use prices when they weight expected costs and expected benefits in making economic decisions. It helps students see how choosing a second-best good or service can in some cases improve their overall well-being.

Concepts:

• Choice
• Incentive
• Price
• Benefit
• Costs
• Substitute

• Standard #1: Scarcity
• Standard #4: Incentives
• Standard #8: Role of Prices

Unit 2: Lesson 12 - How Do Prices Influence My Behavior? Price Elasticity

Students review consumer and producer behavior in light of changing prices. They predict consumers' and producers' responses to changes in prices, product characteristics, costs of production, time and technology factors.

Concepts:

• Choice
• Incentive
• Price
• Substitute

• Standard #1: Scarcity
• Standard #4: Incentives
• Standard #8: Role of Prices

Unit 2: Lesson 14 - Secondary Effects: Price Ceilings and Floors

Students investigate the consequences of price controls in markets for silver, rock concerts, automobiles, razor clams, and school textbooks. (It would be best to use this lesson after students have participated in the silver market game [Unit 2, Lesson 7]

Concepts:

• Price
• Shortage
• Surplus
• Secondary Effects

• Standard #7: Markets and Prices
• Standard #8: Role of Prices

Unit 2: Lesson 8 - A Picture Is Worth a Thousand Words: Demand

This lesson asks students to analyze the relationship between changing prices and changes in consumer behavior, to create and understand the demand schedule graph, and to identify how various determinants of demand change the relative location of the demand schedule.

Concepts:

• Demand
• Price
• Determinants of Demand

• Standard #4: Incentives
• Standard #8: Role of Prices

Unit 2: Lesson 9 - A Picture Is Worth a Thousand Words: Supply

Students analyze the relationship between changing prices and changes in producer behavior. They create a supply schedule graph to represent this relationship. They observe changes in determinants of supply and note the effect of those changes on the supply schedule and the corresponding price-quality relationship.

Concepts:

• Price
• Supply
• Determinants of Supply

• Standard #4: Incentives
• Standard #8: Role of Prices

Unit 3: Lesson 17 - Creating and Using a Budget

This lesson focuses on using budgeting to maximize consumer satisfaction. It describes a flexible view of budgets, linking them to markets and market information, and demonstrates how and why budgets should be reviewed and modified often.

Concepts:

• Budget
• Choice
• Income
• Price
• Marginal Analysis
• Diminishing Marginal Utility
• Substitute
• Utility

• Standard #1: Scarcity
• Standard #2: Decision Making
• Standard #8: Role of Prices

Unit 6: Lesson 38 - Aggregate Demand and Aggregate Supply

Students build their understanding of aggregate demand and aggregate supply. They use their new skills to analyze the effects of events and government monetary and fiscal policies on inflation, unemployment, and economic growth. In the first two Activities, students identify different components of AD and AS and the factors that shift AD and AS. In the last two Activities, students use AD and AS analysis to predict the effect of events and government monetary and fiscal policies on inflation, unemployment, and economic growth.

Concepts:

• Aggregate Demand (AD)
• Aggregate Supply (AS)
• Price
• Fiscal Policy
• Monetary Policy
• Macroeconomic Equilibrium
• Price Level

• Standard #18: Economic Fluctuations