Activity 01
Market Simulation: Demand Shifts
Divide class into buyers and sellers of a product like soft drinks. Introduce scenarios such as income boosts or cheaper substitutes, then have buyers signal new quantities demanded on graphs. Groups plot before-and-after curves and discuss shifts.
Explain how changes in income or tastes affect the demand for a product.
Facilitation TipDuring Market Simulation: Demand Shifts, circulate and listen for students who justify their buying choices using terms like 'substitute' or 'inferior good' to ensure the activity reinforces correct economic language.
What to look forProvide students with a scenario: 'The price of coffee beans increases significantly.' Ask them to draw a demand curve for coffee, showing the effect of this price change. Then, ask them to explain in one sentence whether this is a movement along the curve or a shift.