Activity 01
Simulation Game: Producer Price Response
Assign students roles as apple farmers with fixed costs. Provide price cards from $1 to $5 per kg; students decide and record quantities supplied at each price to plot a supply curve. Introduce a technology shifter like better picking machines and redraw the curve.
Explain the law of supply and its direct relationship between price and quantity.
Facilitation TipDuring the Producer Price Response simulation, circulate and ask each group to explain why their output choice changed as prices rose, requiring them to reference the law of supply.
What to look forPresent students with a scenario: 'The price of lumber has doubled.' Ask them to draw a supply curve for wooden furniture and show the effect of this change. Then, ask them to label whether this represents a movement along the curve or a shift of the curve, and explain why.