Activity 01
Market Simulation: Buyer-Seller Cards
Give pairs cards listing buyer willingness to pay and seller costs for 20 units. They negotiate trades to find equilibrium. Introduce a shock, like a demand boost from tourism, by adding high-value buyer cards. Regroup and graph the new equilibrium. Discuss changes.
Analyze the impact of a demand increase on equilibrium price and quantity.
Facilitation TipDuring Market Simulation, circulate with a timer to keep rounds short and focused so students connect their roles to price changes quickly.
What to look forProvide students with a scenario: 'A heatwave increases demand for air conditioners, while a factory fire reduces the supply of new units.' Ask them to draw the original supply and demand curves, then illustrate the shifts and label the new equilibrium price and quantity. They should write one sentence explaining their graph.