How much is that cupcake really worth?!

Use this as an introductory lesson to supply & demand for Economic, Legal and Political Systems students.

A lesson plan for grades 9–10 Social Studies

By Joy Walker

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Learning outcomes

The object is to have the students see the basic relationship of supply vs. demand (and vice versa) as well as be able to see the relationship of such a small activity to real world scenarios of our economy. Also, the lesson brings into play other aspects of economics from which students will be able to draw for these future lessons.

Teacher planning

Time required for lesson

55 Minutes

Materials/resources

• A good supply of cupcakes (2 to 3 per student). Of these:
  • 1/3 of supply can be chocolate icing on chocolate cupcake
  • 2/3 of supply can be chocolate icing on yellow cupcake

  You can vary the choices as you wish)

• Play money (you can print your own vouchers if wanted)
• Price cards to place in front of the “supply” of cupcakes (several with different prices so you can change the price according to demand.)

(You can also add milk & cups if you want to connect it with complementary goods)

Pre-activities

On whichever Unit Test you give prior to this activity, warn students that their grades will be used for other purposes.

Activities

1. Introduce lesson, state objectives.
2. Assign students their play money based on their Unit Test scores. (Unit Tests for me count two times, so the amount of play money the student receives is based on the double score… giving them more money to buy cupcakes.)
3. On a table at the front of the room I place a limited supply (1 per student) of cupcakes. I create proportions of the types of cupcakes based on the number made.
4. I assign each type of cupcake a price and place the price card in front so the kids know the price.
5. I begin asking students to purchase cupcakes (yes, they can buy more than one) based on their money amounts. Start with the students with less money first.
6. As the supply of cupcakes dwindles, raise the price of the cupcakes.
7. Once one of the types of cupcakes is gone, raise the price again and watch how the leftovers sell.
8. When the students with more money get ready to purchase, resupply cupcakes, but keep the same high price. Go around the room again.
9. When the demand goes down (bellies get full), drop the prices and ultimately try to sell out in the fashion of a “Blue Light Special.”
10. To make the connection to complementary goods, introduce the sale of milk. (By this time the kids will be asking if they can get some water or something, so it will continue the supply and demand aspect as well as the introduction of complementary goods.)
11. Lastly, finish the lesson by making the economic comparisons to the economy and the consumer’s input to the function of the economy. Set the stage for the next day’s follow-up lesson.

Assessment

The assessment for understanding can be in various forms. I usually ask the students to explain in writing what the activity taught them about supply and demand. I also ask them to tell me at least four new things they learned in reference to the lesson. An impromptu quiz also checks understanding well.

Supplemental information

Comments

This lesson works really well for all learning levels. I have found that the more academically challenged children are able to relate to this “hands-on” (munchable) lesson and build a strong foundation in comprehension.