Market Economy

Our Objectives
4.E.1.1, 4.E.1.2

Today

I will learn the basic ideas of a market economy. I will learn the effects of a market economy by discussing ideas with my class, drinking lemonade, doing a short skit, and running my own online lemonade stand.

*Turn & Talk

What is economics?
*Turn & Talk

Market Economy
Taxes both workers and factories pay taxes. The government uses the taxes to build roads, pay for schools, and pay for hospitals. Education Factories to produce goods

Spending workers get food, clothes, housing businesses earn money selling products

Vocabulary
PART 1

Take out your STEM notebooks Open to our Economics Vocabulary Pick 1 out of the 6 words that you think is important Put a star by that word Give me a thumbs up so I know youre ready for part 2

PART 2
Tell a partner(s) sitting next to you: *What word you choose *What does your word mean *Why did you select that word

Vocabulary

Economy the way a country uses money and resources Scarcity: The idea that we cant have everything we want, not enough of something Supply: is how much of something is available. For example, if you have 9 baseball cards, then your supply of baseball cards is 9. If you have 6 apples, then your supply of apples is 6. Demand: is how much of something people want. It sounds a little bit harder to measure, but it really isn't. To measure demand, we can use a very simple numbering system, just like the supply one. If 8 people want baseball cards, then we can say that the demand for baseball cards is 8. If 6 people want apples, then we can say that the demand for apples is 6. Goods: Products or items that are used or consumed (for example, clothes, food, toys) Services: Work that is done for other people (for example, a fire fighter, a construction worker)

Running a Business
Has

anyone ever had a lemonade stand? How is a lemonade stand a business? Did you do any research on what lemonade brand people liked before starting your stand? How did you decide what would be a good price to charge?

The Business of Lemonade

Later today, you will running your own lemonade stand. To be prepared we need to do some research

I have prepared 3 different types of lemonade. Your job is to sample each and rank them: Okay, Good, Best

The Business of Lemonade

Lets add it upwhich lemonade was okay, good, and best? Sample Sample Sample

The Business of Lemonade

Prices: What it cost to make each type of lemonade Sample Sample Sample

Sugar: $2.50 Lemons: $2.00 Water: Free Total: $4.50

Sugar: $2.00 Lemons: $1.00 Water: Free Total: $3.00

Sugar: $1.00 Lemons: $0.50 Water: Free Total $1.50

The Business of Lemonade

1. What made one better than the other?

2. Is there a relationship between preferred taste and price?

3. Which of the three varieties do you think would sell the best in your lemonade stand?

Write your response on a sticky note.

The Business of Lemonade

1.

Write your response on a sticky note.

2.

Stand up, hand up, pair up

Trade sticky notes & sit down at your desk Read what the other person wrote Do you agree? Why? Do you disagree why? Share out

3.

4.

5.

6.

The Business of Lemonade

The better something is the more expensive it is and the less amount we can buy. The cheaper something is we can buy more of it, but its not as great of quality. What things are you willing to pay more for? What things are you willing to pay less for?

Maxs Dilemma
5 characters to act and read up front 10 members of the audience to:

Listen Discuss problem Offer an answer of what to do

Maxs Dilemma
I would supply per day at each price based on just one pitcher of lemonade:
50 cents Make 10 cups Sell 3 cups Profit: $1.50 40 cents Make 8 cups Sells 3 cups Profit: $1.20 30 cents Makes 5 cups Sells 5 cups Profit: $1.50

20 cents = 0 cups because he would only make 2 cents per cup and does not want to sell that cheap

Supply & Demand

Why is Max unwilling to sell his lemonade for 20 cents? What is the best price for Max to sell his lemonade at? What will happen if Max tries to sell his lemonade at 40 cents per cup? What would happen if it was cold and rainy when Max tried to sell his lemonade? What if Max gives a free bag of popcorn with every glass of lemonade? What if the YMCA sells fruit punch for 25 cents per cup?

Try your hand at business

1. Put your laptop on your desk 2. Open Google Chrome 3. In the address bar type in:

www.lemonadestandgame.com
4. What struggles did you have? What success did you have?
If it doesnt work try: http://hoodamath.com/games/coffeeshopgame.php