"Grandma, Buy Me That"Introduction
Students have read about the law of demand. In this lesson,
students will learn how a changing population can affect demand,
and how the change in demand affects the number of firms in
an industry. Lesson Description
Students will use information from the Census Bureau's Web
site to estimate population changes in age categories. Students
will also read a description of market changes in purchases
of goods by a special category of consumers—grandparents.
They will answer four questions and apply this information
by writing a plan for the manufacture and sale of a product
targeted to grandparents. Previous
Knowledge Expected
Voluntary Exchange: buyers and sellers freely choose
to engage in transactions, believing they will be better off
(happier or richer)
Law of Demand: an inverse relationship exists
between quantity demanded and price
Law of Supply: a direct relationship exists between
price and the quantity supplied Applied
Content Standards (from the Council for Economic Education)
Standard 8: Prices send signals and provide incentives
to buyers and sellers. When supply or demand changes, market
prices adjust, affecting incentives. Instructional Objectives
- Students will be able to estimate an increase in demand
for a product given population estimates in age categories
over a period of years.
- Students will be able to use this knowledge to write a
plan for business growth.
Student Web Activity Answers
1-4: Teacher may prepare an answer sheet from the most recent Census Bureau chart.
5: Students' reports should include production and marketing
plans to support their conclusions.
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