1 class periods of 45 minutes each
The concept of costs and benefits and related terms are taught through stories about the toy fads of Hula Hoop and Silly Bandz.
Through the activity the teacher should continue to ask students to think about how they are using the "Big 5 of Economics".
Students will identify the cost and benefits associated with a new product. Relate how supply and demand affect a product/companies success. Define surplus, shortage and equilibrium.
Introduce the terms to be used in this lesson: cost, benefit, supply, demand, equilibrium, surplus, storage. In small groups or as a class have students identify the benefits of owning your own company or producing a new product.
Show the youtube video "The Hudsucker Proxy". List and discuss the costs associated with introducing a new product and/or owning your own company.
Further information and activities are available at econedlink.org.
Students brainstorm possible new products. Identify the costs and benefits associated with the new product, it's production and market value.