Unit 2: Lesson 13 - How Markets Allocate Resources Students read I, Pencil, by Leonard Read, to gain an understanding of Adam Smith's concept of the invisible hand of the marketplace. Students see that a system of market prices brings about cooperation without coercion. Then students use supply and demand analysis to explain how a change in one market tends to affect related markets. Concepts: - Complements
- Invisible Hand
- Markets
- Secondary Effects
- Substitute
- Supply
Standards: - Standard #7: Markets and Prices
- Standard #8: Role of Prices
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