Activity 01
Role-Play: Price Change Simulation
Assign students roles as producers of a good like smartphones. Announce price increases and have them decide output changes, recording quantities on a class chart. Graph individual and aggregate supply curves to discuss the law of supply.
Explain the law of supply and its impact on production decisions.
Facilitation TipDuring the Price Change Simulation, assign roles with clear production constraints to highlight why responses to price changes are not instantaneous.
What to look forPresent students with a scenario: 'The price of lumber, a key input for furniture makers, has just doubled.' Ask them to draw a supply curve for wooden chairs, showing the initial curve and the new curve after the price change. They should label the axes and indicate the direction of the shift.