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The Fair Price

Ms. Avery Harrison

Problem-Based Learning
Problem-based learning is a indirect approach to teaching. PBL allows students to work
together in groups so that they may discover a solution to a problem that could happen in real
life. Since this lesson is applicable to the students life, it teaches them that PBL is not strictly
limited to the classroom. A typical PBL lesson needs to be presented with a hook that
introduces the students to the problem. It also guides them as they create their own ideas and
solutions to the problem at hand. The interactive approach in PBL allows them to not only learn
about relevant information, but it encourages the development of their communication,
interpersonal, and social skills through the emphasis of teamwork. The teacher serves as a guide
and a facilitator rather than an information giver. Students have the chance to research and
consider the problem which encourages the development which helps develop their critical and
analytical thinking skills.

Student Outcomes for The Fair Price

Content Outcomes: (Blooms Taxonomy)
- Identify how the law of supply and demand is effects the consumer and supplier,
especially after national disasters or crisis
- Recall the economy of the United States
- Explain the law of supply and law of demand
- Understand how to graph supply and demand curves
- Apply the law of supply and demand to the United States economy
- Practice supply and demand curves
- Examine events that have caused a shift in supply and demand
- Compare the changes in prices after a disaster or event
- Produce an explanation to maintain prices in a market economy
- Evaluate different reasons for maintaining prices in an economy
Course Standards (ALEX) 7th Grade Civics
6. Using economic concepts to explain historical and current developments and issues in
global, national, or local contexts
7. Analyzing distribution and production maps to determine patterns of supply and demand
Describing effects of government policies on the free market
Identifying laws protecting rights of consumers and avenues of recourse when those rights are

Lesson Objective
Given the opportunity to work in cooperative learning groups during a two-day lesson
entitled The Fair Price, students on team 7-1 will examine the effects of supply and demand in
the economy after a disaster and will illustrate possible solutions to price-gouging. Students will
also examine other times in history where there were shifts of supply and demand to help them
solve their problem. They will present their findings to their classmates in the form of a
Pre-Instructional Activities
The students will be presented with the hook about a disaster striking their city. They will
recall information about what the law of supply and demand is. Then, they will participate in an
interactive website where they will be asked to apply what knowledge they have of supply and
Instructional Procedures/Strategies:
Students will be presented with this hook:
Hook: (turn out the lights) There has just been an earthquake in your city! Many of your
beloved businesses, homes, and natural resources were destroyed. Market forces of supply and
demand help to keep the capitalist system in balance. Earthquakes, floods, and other natural
disasters often cause extreme shifts in the supply of and demand for certain items. When extreme
events affect supply or demand for a particular item, pricing may seem outrageously inflated something people often refer to as "price-gouging." In fact, however, when demand outstrips supply
in an extreme way, the natural response of a market should be for the price to increase significantly.
We will watch a short interactive video of how supply and demand affects the local economy. Then
we will be studying other historical events to help you answer the problem.
>> What can YOU do to solve the problem of supply and demand? What have other
countries and governments done to fix this same problem?

Group Formation:
Students will be placed in groups of four. Each group will be asked a question of how they
would fix the price problem in their economy. They will be assigned one task leader who will be
the voice for their civilians.
Problem Analysis:
What do we know?
There was an earthquake in Hoover.
The United States is a market economy
The law of supply and demand
Prices have increased, demand has decreased
What do we need to find out?
How to make supplies less expensive
What have past presidents and countries done to make supplies feasible at a high
How do countries meet the needs of civilians?
What do you think is happening here?

There are many proposed solutions to fixing prices after a disaster.

How shall you conduct your inquiry?
We will research different effects supply and demand as on consumers, producers and the
Problem Solving
Students will learn about supply and demand in the United States through their own research in
the classroom and will learn general information through the interactive video presented during
the hook. Their research will be guided by handouts and their own general knowledge of supply
and demand.
Problem Reporting/Closure
Students will close this problem with their presentations. As a class, they will vote on which
team came up with the best proposal of the problem.
Students will be assessed by two ways. The first assessment is a rubric with the presentation.
There will be a checklist to illustrate the teacher sees that the students are learning. There will
also be an individual assessment. As groups present their answer to the problem, everyone will
have to record facts that they learned or something significant.
Interdisciplinary Emphasis:
There is some minor emphasis on mathematics for the graphs. Depending on how the students
answer the problem, there could be emphasis on science. Mainly, the focus of this lesson is the
social sciences.
The Great Depression
Hurricane Katrina
World War II
The 1906 Fire and Earthquake in San Francisco

Your historical event is

Hurricane Katrina which
happened in August 2005.
This disaster left many
civilians, especially in New
Orleans, in devastation. Here
are a few facts to help you
see how supply and demand
was affected. (Think scarcity:
jobs, land, food, gas)
- Katrina knocked out
about 95 percent of oil
production in the Gulf - a key supply point for
the U.S. About a
quarter of domestic oil comes from the region!
- About 90,000 square miles of land were destroyed by the hurricane
- 80% of New Orleans was underwater.
- Before the hurricane, the region supported approximately one million nonfarm jobs, with 600,000 of them in New Orleans, but hundreds of thousands
of local residents were left unemployed by the hurricane.
- Hurricane Katrina caused $75 billion in estimated physical damages, the
most costly hurricane in history! It is estimated that the total economic
impact in Louisiana and Mississippi may exceed $150 billion.
How did the United States solve this problem? What did supply and demand
look like during this period?

Your historical event is the Great

Depression. The stock market
crashed on October 29, 1929 and
impacted the United States
economy. Here are some facts
that demonstrate how supply and
demand were affected.
- When Dust Bowl conditions
devastated farmers, many
defaulted on their bank loans,
which helped lead to widespread
bank failure.
At its highest point during the Great Depression, unemployment reached
25% in 1933.
The Dust Bowl years spanned 1930-1936, when a million acres of farmland
across the Plains became worthless due to severe drought and overfarming.
Before the start of the Great Depression, there were 25,000 banks in the
United States. By 1933, almost half of those banks (11,000) had failed.
Citizens had to get their necessities by rations.

What did Franklin Roosevelt and others do to help fix this economic
disaster? What did supply and demand look like during this time period?

Your historical event is World War II. The United States of America joined the
war in December of 1942 after Japan attacked Pearl Harbor. Though many men
left their jobs and homes to fight in the war, the Second Great War was very
beneficial to the United States economy. Here are some facts that supply and
demand were affected. You are encouraged to do more research if you wish!
- The level of employment in manufacturing rose by 60 percent. Women
became employees and took over jobs left by their dads, brothers,
husbands, and sons.
- The War provided immediate benefits to the U.S. economy because it led to
a substantial increase in exports. Some war materials were provided the
Allies through the Lend Lease program.
- By government order, the auto industry shifted completely to producing
vehicles for the military
- The Office of Price Administration (OPA) set prices, wages, and rents and
set up a rationing system for many
basic consumer goods, including
sugar, butter, tires, and gasoline.
Many consumer goods made of
metal either disappeared or other
materials were substituted for

What did supply and demand look like during this era? What was done to
fix the scarcity of supplies?

Your historical event is the

Great Earthquake and Fire in
San Francisco. This natural
disaster happened in 1906.
Over a period of 60 years, the
city had become the financial,
trade and cultural center of
the West; operated the
busiest port on the West
Coast; and was the "gateway to
the Pacific", through which
growing US economic and
military power was projected
into the Pacific and Asia. Over
80% of the city was destroyed by the earthquake and fire. Here are some facts
that may help you see how supply and demand is affected during a disaster and
help you see what can be done to fix a problem.
- Over 225,000 of the citys 400,000 residents were homeless.
- Affected 375,000 square miles, half of which were in the Pacific Ocean.
- The Navy contributed to putting out fires by running water lines and
providing water to the citys fire department for their steam engines, and
many organizations like the Red Cross provided relief.
- The fire and earthquake impacted trade, industry, and population growth.
How was supply and demand affected? What was done to fix the scarcity of

Supply and Demand Review

Like the law of demand, the law of

supply demonstrates the quantities
that will be sold at a certain price.
But unlike the law of demand, the
supply relationship shows an upward
slope. This means that the higher the
price, the higher the quantity
supplied. Producers supply more at a
higher price because selling a higher
quantity at higher price increases

The law of demand states that, if all other

factors remain equal, the higher the price of
a good, the less people will demand that
good. In other words, the higher the price,
the lower the quantity demanded. The
amount of a good that buyers purchase at a
higher price is less because as the price of a
good goes up, so does the opportunity cost
of buying that good. As a result, people will
naturally avoid buying a product that will
force them to forgo the consumption of
something else they value more. The chart
below shows that the curve is a downward

Directions: Make a supply and demand chart graphing the supply and demand curve of
a supply (gas, fresh water, clothes, jobs, and food) during your historical event.





The Fair Price

Ms. Harrison

Student Name:



Group researched
the subject and
integrated 3 or more
\"tidbits\" from their
research into their

Group researched
the subject and
integrated 2
\"tidbits\" from their
research into their

Group researched
the subject and
integrated 1 \"tidbit\"
from their research
into their newscast.

Either no research
was done or it was
not clear that the
group used it in the

Group Work

The group functioned

exceptionally well. All
members listened to,
shared with and
supported the efforts
of others. The group
(all members) was
almost always on

The group
functioned pretty
well. Most members
listened to, shared
with and supported
the efforts of others.
The group (all
members) was
almost always on

The group
functioned fairly well
but was dominated
by one or two
members. The group
(all members) was
almost always on

Some members of
the group were often
off task AND/OR
were overtly
disrespectful to
others in the group
AND/OR were
typically disregarded
by other group

Point of View Purpose

Answer establishes a
purpose at the
beginning and
maintains that focus
throughout the

Establishes a
purpose at the
beginning, but
wanders from that

The purpose is
somewhat clear but
many apects of the
presentation seem
only slightly related.

It was difficult to
figure out the
purpose of the


Facial expression
and body language
show a strong
interest and
enthusiasm about
the topic, but it is not

Facial expression
and body language
show a strong
interest and
enthusiasm about
the topic, but it is
somewhat overdone.

Facial expression
and body language
show some interest
and enthusiasm
about the topic

Facial expression
and body language
depict apathy or
boredom with the


Students created a
presentation that
was thought out,
clever, and
incorporated the

Students created a
well done
presentation with
some thought and
incorporated the

Students created a
It was difficult to
good presentation
figure out the
but lacked
uniqueness and
didnt incorporate the


Group members:
Directions: Using your historical event handout and the notes taken during the
interactive video, you must now present an answer to stabilizing supply and demand
after a disaster. You must present how your group proposed to solve the prices when the
supply is low and demand is high during your historical event. Be as creative as you
want! Create a skit, brochure, poster, bill etc. After everyone is done presenting, you (the
citizens) will vote on what you will do to fix your economy.

Helpful Vocabulary
Market- a place or service that allows buyers and sellers to exchange goods
and services
Demand- the quantity of a good or service that consumers are willing and
able to buy at a given price during a specific period of time
Law of demand- as the price of a good decreases, people buy more
Supply- the quantity of a good or service that producers are willing and able
to offer at each possible price during a specific period of time
Law of supply- as the price of a good increases, producers will offer more
Economic good- an economic good refers to goods and services
Economic bad- any item for which we would pay to have less of
Scarcity- there is not enough of that item to satisfy everyone who wants it
Equilibrium- the point at which the quantity demanded equals the quantity
supplied at a particular price
Surplus- at prices above the equilibrium price the quantity supplied is
greater than the quantity demanded
Shortage- at prices below the equilibrium price the quantity demanded is
greater than the quantity supplied
Ration- A fixed amount of a commodity officially allowed to each person
during a time of shortage, as in wartime: "the bread ration".