Lemonade Stand Adventure

Objective

To introduce 7th Grade students to basic business concepts through the interactive and engaging context of running a lemonade stand.

Curriculum Area

Social Studies - Economics (aligned with US Common Core State Standards for Grade 7 Social Studies)

Standards

• CCSS.ELA-LITERACY.RH.6-8.7: Integrate visual information with other information in print and digital texts.
• CCSS.MATH.CONTENT.7.RP.A.1: Compute unit rates associated with ratios of fractions.
• E-1: Understand economic concepts and the characteristics of various economic systems.

Lesson Objectives

• Understand the basic principles of supply and demand.
• Identify key components of a business plan.
• Develop skills in teamwork and problem-solving.
• Practice basic math operations in a real-world context.

Materials

• Whiteboard and dry-erase markers
• Pre-printed "Lemonade Stand Business Plan" worksheets
• Tokens or play money
• A sample budget spreadsheet
• Optional: Lemonade ingredients for a hands-on demonstration (1 lemon, sugar, water, cups)

Procedure

Introduction (5 minutes)

1. Engage Students' Interest: Begin with a warm-up question: "Who has visited or run a lemonade stand?" Ask students to share their experiences in a brief discussion.
2. Set the Scene: Explain that today they will learn about running a lemonade stand, focusing on how businesses make money and how they decide what to sell.

Direct Instruction (10 minutes)

1. Define Key Concepts: Introduce the terms supply, demand, profit, and cost. Write each term on the board with a simple definition.
   • Supply: The amount of product a seller has to offer.
   • Demand: The desire of consumers to purchase a product.
   • Profit: The money made after all costs are subtracted from revenue.
   • Cost: The expenses incurred in making or selling a product.
2. Connect to Real Life: Emphasize the importance of these concepts in real-world businesses like a lemonade stand.

Activity: Create a Business Plan (20 minutes)

1. Group Work: Divide the class into groups of 5 students. Give each group a "Lemonade Stand Business Plan" worksheet.
2. Role Assignment: Assign roles within each group — Manager, Treasurer, Marketing Head, Supply Chain Manager, Customer Service.
3. Plan Development: Have students discuss and fill out their business plans. They should decide on the following:
   • Price per cup of lemonade
   • Cost of ingredients and supplies
   • Projected sales (based on a scenario of a hot summer day)
   • Marketing strategies (how to attract customers)
   • How they will stand out from competitors
4. Conduct Simple Math: Each group calculates their potential profit based on their costs and estimated sales.

Presentation and Reflection (7 minutes)

1. Group Presentations: Allow each group to present their business plan briefly, sharing unique strategies and predicted outcomes.
2. Class Discussion: Lead a discussion around what strategies seemed most effective and why, focusing on supply and demand effects.
3. Reflection: Prompt students to think about how their understanding of business concepts changed through the activity.

Conclusion (3 minutes)

1. Summarize the Key Points: Highlight the importance of understanding costs, pricing, and marketing strategies.
2. Real-World Connection: Explain how these principles apply to larger businesses and everyday economic decisions.

Assessment

• Informal Assessment: Observe group interactions and participation during the business plan activity.
• Formal Assessment: Collect the completed "Lemonade Stand Business Plan" worksheets to evaluate understanding of key concepts.

Differentiation

• Advanced Learners: Challenge students to consider additional components like customer feedback or competition.
• Struggling Learners: Pair students with peers who provide extra support, and provide a simpler version of the budget.

Extension Activity

Encourage students to create advertisements for their lemonade stand using poster paper. They can draw or write an ad and display it in the classroom.

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This lesson plan is designed to engage students in practical economics while encouraging creativity and teamwork. It provides a solid foundation for understanding business basics, setting the stage for more complex concepts in future classes.