Market Shifts

Overview

Duration: 45 minutes
Year Level: Year 13
Subject: Economics
NCEA Level 3 Achievement Standard: AS91399
Focus: World Price with an Increase in the Supply Curve

Learning Outcomes

Students will be able to:

1. Explain how an increase in the supply curve affects the world price.
2. Analyze the impact of changes in world price on local and global markets.
3. Apply economic models to real-world scenarios.

Materials Needed

• Whiteboard and markers
• Projector and laptop
• Handouts with supply and demand graphs
• Calculators
• Sticky notes

Lesson Structure

Introduction (5 minutes)

1. Teacher Introduction: Welcome the students and provide an overview of the lesson's goals.
2. Warm-Up Question: "What factors can cause an increase in the supply of a product?" (Encourage students to think about technological improvements, lower production costs, etc.)

Direct Instruction (10 minutes)

1. Explain the Concept:
   • Using the whiteboard, draw and explain the basic supply and demand curves.
   • Illustrate what happens to the equilibrium price when the supply curve shifts to the right.
2. World Price Discussion:
   • Define world price and its importance in global trade.
   • Explain how an increase in the supply of a commodity (e.g., oil, wheat) can affect world prices.

Guided Practice (10 minutes)

1. Activity - Graph Analysis:
   • Distribute handouts with supply and demand graphs showing an increase in supply.
   • Ask students to identify the old and new equilibrium prices and quantities.
   • Discuss as a class how the increase in supply affects price and quantity.

Independent Practice (10 minutes)

1. Scenario Analysis:
   • Present a real-world scenario where the supply of a commodity has increased (e.g., advancements in renewable energy leading to more wind turbines).
   • Ask students to independently analyze the scenario and write down their answers to the following questions:
     • What caused the increase in supply?
     • How will this affect the world price of the commodity?
     • What are the possible impacts on local and global markets?

Group Discussion (5 minutes)

1. Pair and Share:
   • Have students pair up to discuss their answers with a partner.
   • After discussing, each pair shares one key takeaway with the class.

Conclusion (5 minutes)

1. Recap Key Points:
   • Summarize the effects of an increased supply on world price, using examples from the lesson.
2. Q&A:
   • Open the floor for any final questions or clarifications.
3. Exit Ticket:
   • Ask students to write one question they still have about the topic on a sticky note and hand it in as they leave.

Assessment

• Formative Assessment: Throughout the lesson via Q&A, discussion participation, and the exit ticket.
• Summative Assessment: Future quizzes/tests on the topic and analysis of their independent practice work.

Reflection

• Post-Lesson: Reflect on students' understanding based on their participation and exit tickets. Modify future lessons accordingly to address any persistent gaps in knowledge.