Introduction

Why is it unlikely that you will find many boat dealers in a desert? Or many advertising agencies in a rural area? Before a business sets up shop, it researches the potential demand for its product. If consumers don’t have the desire, ability, or willingness to buy the product, the business will not succeed.

How many hours do you spend studying every night? How many hours would you study if you were paid $1 an hour? $10 an hour? If you would study more for a higher price, you are following the law of supply, which states that the quantity supplied varies directly with the price.

When we study markets, we often use the tools of supply and demand to show how the equilibrium price and quantity of output are determined. When we study the economy as a whole, we use the concepts of supply and demand in much the same way.

This lesson on Microeconomics and Macroeconomics will help you to understand the concepts stated above.

Task

Upon completion this Web Quest, you should be able to:

1.	Explain the meaning and concept of demand and supply
2.	Explain the purpose of a demand schedule
3.	Illustrate the concept of demand in the form of a graph
4.	Explain the difference between the supply schedule and the supply curve
5.	Explain what is meant by a change in quantity supplied
6.	Specify the reasons for changes in supply
7.	Explain the concept of aggregate supply
8.	Describe the importance of aggregate demand

Process

Check the resource list for information to produce at least one type written Page on A and B below (size 12 font) or a power point presentation for the following:

A. A good, complete definition of Microeconomics

Explain the following concepts in relation to Microeconomics ( 1 page )

1.	MARKETS AND PRICES
2.	SUPPLY AND DEMAND
3.	COMPETITION AND MARKET STRUCTURE
4.	INCOME DISTRIBUTION
5.	MARKET FAILURES
6.	THE ROLE OF THE GOVERNMENT

B. A good, complete definition of Macroeconomics

Explain the following concepts in relation to Macroeconomics: ( 1 page )

1.	GROSS NATIONAL PRODUCT
2.	AGGREGATE SUPPLY
3.	AGGREGATE DEMAND
4.	UNEMPLOYMENT
5.	INFLATION AND DEFLATION
6.	MONETARY POLICY
7.	FISCAL POLICY

C. Create a supply and demand chart using your own data.

Indicate the equilibrium

Explain or illustrate how an increase or decrease in supply and demand will effect the curves on the graph. (teacher has graph paper if it is not power point)

RESOURCES

Web Sites

www.google.com

http://vlad1mir.tripod.com/index.htm

http://ecedweb.unomaha.edu/teach.htm

http://www.fgn.unisg.ch/eumacro/tutor/

RESOURCE BOOKS

Clayton Gary, Economics, Principles and Practices, 1995, Glenco/McGraw-Hill,Westerville, Ohio.

Wolken, Lawrence, Invitation to Economics, Third Edition, 1988, Scott,Foresman and Company, Glenview, Illinois.

Arnold, Roger, Economics in our times, 1995, West Publishing Company, St. Paul, Minnesota.

Miller, Roger, Economics Today & Tomorrow, 1991, Glencoe, New York, New York

EVALUATION

	Complete Definitions
	Use of Resources
	Use of Technology
	Use of the Internet
	Presentation of the Graph
	Format and Presentation of Power Point
	Creativity
	Explanation of Concepts

CONCLUSION

In a market economy, your opinions count when you cast your dollar “votes” for the goods and services you like best. You express your demand for a product when you are willing and able to purchase it. When someone is willing to pay for a product---the higher the pay, the more you are willing to supply. Supply is the amount of production. When the supply satisfies the demand, the situation is called the equilibrium, and variables such as price and quantity will remain unchanged unless something happens to disturb the system.

TEKS

4A, 4B, 5A, 7A, 8A, 8B, 10A,12A, 13C, 13D, 15B, 16B,17C, 23A, 24A,24B,24C, 24D

Introduction Task Process Resources Evaluation Conclusion TEKS

Back to Social Studies Page