Total Points of Activity: 60
Duration: 2 weeks (4 class periods)
Start Date: 6/8/10
Objective: Students will beable to show how prices are determined in a market and how these prices affect consumers and producers.
Level C – 30 points required
(# 1 Required)
____ 1. Read and discuss the text about How theMarket Works in groups of two. Textbook page 71 – 82. Write down 5 things that are new to you. (10 points)
____ 2. Write the ten vocabulary terms and define them using your own words. (10 points)____ 3. Summarize the section Our Market Economy in one paragraph. (10 points)
____ 4. Summarize the section How Is Price Determined in one paragraph. (10 points)
____ 5. Answer the Questions in theUse the Language of Business section on page 84. (10 points)
____ 6. Complete the section Review What You Learned on page 84. (10 points)
____ 7. Write a short explanation for the graph aboutEquilibrium Price on page 78. Be sure to explain what the equilibrium price of the picnic table is and how it was established. (10 points)
Level B – 15 points required
____ 8. A strangely hot and drysummer prevents much of the Cerro Punta coffee crop to mature. How will this affect the price of the coffee that is produced in Cerro Punta? Explain what might happen to the demand for other coffee thatis not produced there? Present you’re your responses in a 3 minute consumer’s news brief for the evening TV news. Use graphs or diagrams to help tell your story. (15 points)
____ 9. Suppose a companyproduces a new toy that is liked by both adults and children. There is a great demand for it so the suppliers raise the price because no other firm produces the toy. Even when the price wasincreased, the suppliers cannot keep up with demand. Some people think the supplier is taking advantage of the public by increasing the price. Are such price increases allowed in a market system? Should the...