- Through the use of diverse teaching strategies this activity involves students in a simulation that shows how price is determined in a market through the forces of supply and demand.
| Instructor Prep. Time | Student In-Class Time | Student Out-of-Class Time |
| Approximately 30 minutes | One class period | None |
- Transparencies
- Graph paper
- Stack of buy and sell cards in different amounts
- Score sheets
Step-by-Step Procedure:
- Begin by reading instructions for the activity out loud.
- Clear a large area in the middle of the classroom and designate this as the marketplace.
- Put the buy and sell cards on a table in separate piles.
- Divide the class into two groups of equal students and let them stand across from each other. Designate one group as sellers and the other as buyers. Students should be asked at this point to take a look at the group across from them as they will negotiate the terms of trade for wheat with them.
- Next, the group of buyers should choose a recorder who at the completion of a round records all transactions.
- Pass out score sheets to all and explain to students how to record their transactions. Review and make sure every student knows how to fill out the score sheet. A transparency can be used at this time to show how each entry is recorded.
- Explain that each round of trading occurs for two minutes and a total of three to four rounds is conducted. A practice round can be performed to familiarize students on how a trade is conducted in the market. A minute interval between each round is provided for groups to come back to their original side of the room.
- All transactions that are completed in a round are reported by the buyers to the recorder who records them on the transparency. The overhead is left on so that the class can see the direction in which the market is moving.
- At the end of a few rounds, have students calculate their profits or losses in each round and then their overall performance.
Suggestions for Use:
- The activity works best with at least 20 students. Additionally, it helps to appoint one student to update the tally sheet and another to shuffle and pile the buy and sell cards.
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