Supply and Demand

Curriculum Alignment

Key Stage 3 (Year 7)
Aligned to the KS3 National Curriculum for Citizenship and Economic Wellbeing:

• Economic Wellbeing: Key principle of understanding scarcity and resource allocation to develop financial literacy and decision-making skills.
• Target Level: Students will grasp the basic concept of supply and demand, apply it to real-life scenarios, and develop economic reasoning grounded in everyday experiences.

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Learning Objectives

By the end of this lesson, students will:

1. Understand the basic principles of supply and demand (how changes in supply and demand affect price).
2. Analyse how supply and demand apply to real-world contexts, including the UK market.
3. Simulate the mechanics of supply and demand using an interactive class activity.
4. Evaluate the impact of scarcity on consumers' choices and producers' decisions.

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Lesson Structure Overview (45 minutes)

1. Starter Activity (5 mins)

Goal: Hook the students and assess prior knowledge.

• Pose the question: "Why is water cheaper than diamonds?"
• Encourage students to respond freely using prior knowledge or guesses. Write key phrases/ideas on the board (e.g., “valuable,” “not a lot of diamonds,” “people need water”).
• Conclude the starter by explaining: "Today, we are learning about supply and demand and how it affects price in the real world!"

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2. Explanation and Demonstration (10 mins)

Goal: Introduce the concept and basics of supply and demand in a relatable context.

Teacher’s Script:

1. Supply:

   • "Imagine there are 30 of you in the classroom, but there is only one chocolate bar to go around. Would the price go up or down?"
     (Allow students to respond—use this moment for interaction.)
   • Key Point: “When something is scarce (low supply), businesses may increase the price. Supply means how much of a product or service is available.”

2. Demand:

   • "Now, imagine you all hate chocolate. How would that affect the price?"
     (Let students respond.)
   • Key Point: “When demand (how much people want to buy something) is low, prices fall because suppliers want to sell their product.”

Visual Support: Draw on the whiteboard—create two axes: Price vs. Quantity. Use simple visuals to demonstrate:
a) High Demand = Higher Prices (Shift the curve right)
b) Scarce Supply = Higher Prices (Shift curve left).

Example (Relevant to UK students):

• "During the Covid-19 pandemic, remember how hard it was to get toilet paper? Because there wasn’t much supply, prices for some products increased!"

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3. Active Learning Activity (20 mins)

Goal: Make supply and demand tangible with a hands-on, engaging game.

Activity: The Great Apple Auction

1. Set-Up:

   • Divide the class into two groups: Buyers (15 students) and Sellers (15 students).
   • Provide each Buyer with 10 “pounds” in fake money.
   • Sellers each have 3 apples (cut out apple drawings for props).

2. Instructions:

   • Buyers are trying to purchase apples, but they can negotiate the price.
   • Sellers can increase or decrease the price depending on how much Buyers want their apples.
   • After 5 minutes of trading, change the supply:
     a) Fewer apples (e.g., 2 for each Seller).
     b) More apples (e.g., 4 for each Seller).
   • Observe how pricing behaviour changes as supply alternates.

3. Key Questions Post-Activity (Debrief):

   • What happened to the prices when the apples became scarce?
   • What happened to the prices when there were too many apples?
   • How might this relate to things you see in everyday life (e.g. trendy trainers, petrol)?

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4. Reflection and Discussion (7 mins)

Goal: Deepen understanding and connect theory to broader implications.

• Pair Discussion (3 minutes):
  • "In pairs, discuss: How does supply and demand affect you as a consumer each day (e.g., shopping for clothes, phone deals)?"
• Whole-Class Share (4 minutes):
  • Pick a few pairs to share their thoughts.
  • Prompt students to articulate what they’ve learned and identify examples in their lives.

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5. Plenary (3 mins)

Goal: Reinforce learning and consolidate understanding.

• Quick-Fire Quiz (Teacher-Led):
  • Ask a series of true/false or quick-answer questions, e.g.:
    1. If there’s lots of something available, prices usually go down—True or False?
    2. If everyone wants the newest video game console, prices will…?
    3. What happens to prices in high demand but low supply situations?
• Award house points or a small reward for correct answers to encourage participation.

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Differentiation and Inclusion

• For SEN and EAL learners:

  • Use visuals and props to simplify explanations of supply and demand. Pair these learners with a supportive peer during the activity.
  • Offer sentence starters for reflection questions (“When something is scarce, the price…”) to aid participation.

• For higher-ability students:

  • Challenge them during the Plenary with questions like:
    • "What happens if demand and supply change at the same time?"

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Resources Needed

1. Whiteboard and marker pens (for sketching graphs).
2. Fake money and apple printouts for active game.
3. A bell or timer to manage activity transitions.
4. Projector (optional) to show visual aids/slides if preferred.

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Homework/Extension (Optional)

• Research Task:
  • Write a short paragraph: Find a product or service where prices changed drastically recently in the UK (e.g., rising petrol prices, PlayStation consoles). Why do you think this happened?

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Evaluation (Teacher Reflection)

• Did students grasp the key ideas (e.g., responses during the plenary quiz)?
• Were they able to connect concepts to real-world examples?
• Did the active learning activity engage students of all abilities?