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Understanding Shortage and Surplus – Needs vs. Wants – Needs are essential, wants are extra – Supply & Demand Basics – Supply is how much we have, demand is how much we want – What is a Shortage? – Shortage: not enough of something – What is a Surplus? – Surplus: more than needed | This slide introduces the basic concepts of supply and demand, which are fundamental to understanding economics. Begin by explaining the difference between needs (things we must have to survive) and wants (things we would like to have but are not necessary for survival). Then, introduce the idea that supply is the amount of a product available, and demand is how much people want that product. Discuss how a shortage occurs when there isn’t enough supply to meet the demand, and a surplus happens when there’s more supply than what is demanded. Use simple, relatable examples to illustrate these points, such as a popular toy during the holiday season (shortage) or leftover Halloween candy (surplus).

Understanding Supply and Demand – What is supply? – Supply is how much of something is available. – What is demand? – Demand is how much people want that thing. – How supply and demand work together – They decide how much is sold and for what price. – Effects on store inventory – This determines what and how much is in the store. | This slide introduces the basic concepts of supply and demand, which are fundamental to understanding economics. Supply refers to the quantity of a product or service that is available for purchase, while demand refers to the desire of buyers for that product or service. Together, they determine the price and quantity of goods in a market. For example, if a new toy is in high demand but in limited supply, it might be hard to find in stores and could be more expensive. Conversely, if a store has a surplus of a toy that is not in high demand, they might have a sale to encourage people to buy it. Use simple examples to help students grasp these concepts, such as their favorite snacks or toys.

Understanding Shortage in Supply and Demand – What does shortage mean? When demand is greater than supply, there’s not enough for everyone. – Shortage example with toys Like when everyone wants the same popular toy, but the store runs out! – Reasons behind shortages Shortages can happen because of increased demand or decreased supply. – Effects of shortage on prices When there’s a shortage, prices can go up because the item is rare. | This slide introduces the concept of shortage in the context of supply and demand. Begin by explaining that a shortage means there isn’t enough of something that people want to buy. Use a relatable example, such as a popular toy being sold out, to illustrate the point. Discuss the reasons why shortages might occur, such as a sudden increase in demand or a problem with the supply of the item. Finally, explain how shortages can affect prices, often leading to an increase because the item becomes more valuable when it’s hard to find. Encourage students to think of times when they’ve experienced a shortage and to consider how it made them feel and what happened to the price of the item.

Understanding Surplus in Supply and Demand – Surplus means having more than needed – Imagine too many apples at the store – If a store has too many apples, they might lower the price to sell them faster. – Effects of surplus on prices – When there’s a surplus, prices can drop because the supply exceeds demand. – Reflect on a personal surplus experience – Think of a birthday with too many balloons or a party with too much cake. | This slide introduces the concept of surplus to third-grade students by relating it to familiar situations. Start by explaining that a surplus occurs when there’s more of something than what people need or want. Use the example of a store with too many apples to illustrate how a surplus might affect prices, prompting the store to sell them at a lower price to avoid waste. Encourage students to think of their own examples of surplus, such as having too many balloons at a birthday party or too much cake, and discuss how that made them feel and what could be done with the excess items. This will help them grasp the concept of surplus in a tangible way.

Reading Graphs: Supply and Demand – Graphs show supply and demand – Learn to read a bar graph – A bar graph has labels, bars show amounts – Spotting shortage and surplus – Shortage: demand is high, supply is low. Surplus: supply is high, demand is low – Practice with examples – We’ll use toy and lemonade stand graphs to learn | This slide introduces students to the concept of using graphs to visualize supply and demand. Start by explaining that graphs can tell us stories about buying and selling. Show them the parts of a bar graph, including the title, labels, and bars. Then, help them identify what a shortage looks like on a graph (where the demand bar is higher than the supply bar) and what a surplus looks like (where the supply bar is higher than the demand bar). Use simple and relatable examples, such as a toy store running out of popular toys (shortage) or having too many unsold toys (surplus), and a lemonade stand selling out quickly or having leftover lemonade at the end of the day. Encourage the students to ask questions and provide their own examples if they can.

Understanding Shortage and Surplus – Shortage on a graph – When demand is higher than supply, the graph shows a shortage. – Surplus on a graph – When supply is higher than demand, the graph shows a surplus. – Graph examples of shortage – Graph examples of surplus | This slide aims to help students visualize and understand the concepts of shortage and surplus using graphs. A shortage occurs when the demand for a product is greater than the supply, which can be shown on a graph where the demand line is above the supply line. Conversely, a surplus happens when the supply of a product exceeds the demand, indicated by the supply line being above the demand line on the graph. Use simple, relatable examples like a lemonade stand to demonstrate these concepts: if many people want lemonade but there’s not enough made, that’s a shortage; if there’s a lot of lemonade but not many buyers, that’s a surplus. Encourage students to think of other examples and how they might look on a graph.

Real-Life Examples of Shortage and Surplus – Ice cream shortage on hot days – Not enough ice cream for everyone who wants it – Candy surplus after Halloween – Stores have leftover candy they need to sell – Reasons for shortage and surplus – Why might a shop run out of a popular item? Why might they have too much of another? – Understanding supply and demand | This slide aims to help students understand the concepts of shortage and surplus through relatable examples. A shortage occurs when demand exceeds supply, like ice cream stands running out on a hot day because more people want ice cream to cool down. A surplus happens when supply exceeds demand, like stores having too much candy after Halloween because fewer people are buying it. Discuss with the students why these situations occur, such as seasonal changes affecting demand for certain products. Encourage them to think of other examples of shortage and surplus they may have noticed in their daily lives and how these situations affect both buyers and sellers.

Class Activity: Supply and Demand Game – Understand shortage and surplus – Create a classroom market – We’ll set up ‘shops’ in class to simulate a market – Engage in buying and selling – Use play money to buy and sell items with classmates – Observe market changes – Notice what items are in high demand or have too many | This interactive game is designed to help students grasp the concepts of shortage and surplus in a fun and engaging way. Set up different ‘shops’ around the classroom, each with various items (could be school supplies, snacks, etc.) and provide students with play money. They will act as consumers and producers, buying and selling items. Monitor the activity to see which items are selling out (surplus) and which are in high demand (shortage). After the activity, discuss as a class why some items were more popular and others were not, linking this to the concepts of supply and demand. Possible variations of the activity could include adjusting prices, introducing ‘events’ that affect supply or demand, or having students create advertisements for their shops.

Understanding Shortage and Surplus – Recap: What’s a shortage? – When demand is greater than supply, like when many people want the same toy. – Recap: What’s a surplus? – When supply exceeds demand, like too many apples at the store and not enough buyers. – Supply & demand in daily life – How having too many or too few of something affects what we buy and how much it costs. – Q&A session | As we conclude today’s lesson, review the concepts of shortage and surplus. A shortage occurs when there aren’t enough goods for the people who want to buy them, often causing prices to rise. A surplus happens when there are more goods than people want to buy, which can lead to lower prices. Relate these concepts to everyday life by discussing how they might affect the students’ experiences, such as the availability of their favorite snacks or toys. Encourage students to ask questions about shortages, surpluses, supply, and demand to ensure they have a solid understanding of the material covered today.