Economics – 11/18/2016

I.  Bellwork

• ACT Questions

II.    Objective

• Analyze how quantity and prices change in the market due to a variety of determinants.
• Synthesize information from the simulation into a coherent understanding prices.
• Create economic models based upon the results of the simulation and the reading.

III.  Discuss

• Changes in Demand & Supply Graph

IV.    Classwork

A.  Supply and Demand Activity – The Pearl Exchange

B.  Read the article Cheap Pearls   Cheap Pearls

• Summarize the article (4-5 sentences)
• Create an economic model demonstrating what is happening.

C.

From a starting point of D & S

1. What is the current equilibrium price? Where does S &D intersect.
2. What is the new price if demand remains constant and supply increases to S²?
3. What would be the new price if demand decreases to D1 and Supply increases to S²?
4. What would be the price if demand remains constant D and Supply increases to S¹?
5. What could cause an increase in the supply of gold?

Economics F2016