Active learning ideas
Supply focuses on the producer's side of the market equation. Students investigate the law of supply, which states that as prices rise, firms are generally willing to offer more of a product for sale. This topic covers the motivations of firms, primarily profit, and the various factors that can cause the supply curve to shift, such as changes in the cost of production, technology, or government taxes and subsidies.
Activity 01
Students act as producers making paper planes. The teacher 'buys' them at different prices. As the price offered increases, students observe how they are willing to work harder or hire 'helpers' to increase supply.
What is the law of supply?
Activity 02
Groups are given a business (e.g., a bakery). They are presented with 'event cards' like 'Flour prices double' or 'New efficient oven purchased.' They must illustrate how each event shifts their supply curve.
How do production costs affect supply?
Activity 03
Pairs discuss how a government subsidy for electric cars versus a tax on plastic bags affects the supply of those items. They share their conclusions on how policy changes producer behavior.
What factors cause the supply curve to shift?
A few notes on teaching this unit
Watch Out for These Misconceptions
Supply is just the amount of stock a shop has.
Supply is a relationship between price and the quantity producers are willing to sell over a period. Using a simulation where 'stock' changes based on 'price' helps students see supply as a flow, not a static pile.
Higher costs mean higher supply because the price is higher.
Higher production costs actually decrease supply (shift the curve left) because it becomes less profitable at every price. Peer-led 'cost-benefit' analysis helps clarify this relationship.
Methods used in this brief
Demand and the Consumer
Analysis of consumer behaviour, the law of demand, and the factors that cause shifts in the demand curve.
8 methodologies
Market Equilibrium and Price Determination
Students learn how the interaction of supply and demand determines market equilibrium prices and quantities.
8 methodologies
Price Elasticity
An introduction to price elasticity of demand (PED) and price elasticity of supply (PES), including their calculation and interpretation.
8 methodologies