Supply Shifters: Impact on Market Equilibrium
Created byJeffrey Folkard
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Supply Shifters: Impact on Market Equilibrium

Grade 12Economics1 days
In this project, students explore the determinants of supply, focusing on Technology, Resources, Number of Sellers, and Government Actions (TRNGB). Through hands-on activities, simulations, and real-world analysis, students investigate how these factors shift the supply curve and impact market equilibrium. The project culminates in a synthesis activity where students predict the combined effects of multiple shifters on market equilibrium, demonstrating a comprehensive understanding of supply and demand dynamics.
Supply ShiftersMarket EquilibriumTRNGBSupply and DemandEconomicsGovernment Policy
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Inquiry Framework

Question Framework

Driving Question

The overarching question that guides the entire project.How can businesses strategically adjust their supply in response to shifts in technology, resources, competition, and government policies to maintain profitability and market share?

Essential Questions

Supporting questions that break down major concepts.
  • How do changes in technology affect the supply curve and market equilibrium?
  • How do resource availability and costs influence a producer's willingness to supply goods or services?
  • In what ways does the number of sellers in a market impact the overall supply?
  • How do government subsidies, regulations, and business taxes act as shifters of supply?
  • How can we visually represent the effects of these supply shifters on a supply and demand graph to predict changes in equilibrium price and quantity?

Standards & Learning Goals

Learning Goals

By the end of this project, students will be able to:
  • Identify and explain the effects of changes in technology on the supply curve and market equilibrium.
  • Analyze how resource availability and costs influence a producer's willingness to supply goods or services.
  • Evaluate the impact of the number of sellers in a market on the overall supply.
  • Investigate how government subsidies, regulations, and business taxes act as shifters of supply.
  • Graphically represent the effects of supply shifters on a supply and demand graph to predict changes in equilibrium price and quantity.

economics

SS.E.3.12
Primary
describe various determinants (shifters) of supply (Technology, Resources, Number of Sellers, Government Actions (subsidies, regulations, and business taxes), and illustrate on a graph how they can change equilibrium price and quantityReason: Directly addresses the project's focus on supply shifters and their impact on market equilibrium.

Entry Events

Events that will be used to introduce the project to students

"The Case of the Vanishing Veggies: A Supply Chain Simulation"

Students enter class to find empty shelves where the class 'store' usually is. They must investigate 'the crisis,' interviewing 'suppliers' (other students) to uncover which TRNGB shifters are at play and how they've impacted the supply of produce, then graph the changes.
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Portfolio Activities

Portfolio Activities

These activities progressively build towards your learning goals, with each submission contributing to the student's final portfolio.
Activity 1

Resource Rumble: Cost & Availability Analysis

Students will analyze how the cost and availability of resources affect a producer's ability and willingness to supply goods or services. This activity focuses on the 'Resources' component of the TRNGB supply shifters.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Select a product whose production relies heavily on a specific resource (e.g., gasoline and crude oil, bread and wheat, aluminum cans and bauxite).
2. Research recent trends in the cost and availability of that resource.
3. Write a report detailing how changes in the resource's cost and/or availability have impacted the supply of your chosen product. Include real-world examples.
4. Present your findings in a short presentation (e.g., using slides or a video) that visually demonstrates the relationship between resource changes and supply shifts.

Final Product

What students will submit as the final product of the activityA detailed report and presentation analyzing the impact of resource costs and availability on supply.

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of analyzing how resource availability and costs influence a producer's willingness to supply goods or services, and the standard SS.E.3.12 by describing the resources determinant of supply.
Activity 2

Seller Showdown: Market Competition Simulation

Students will explore how the number of sellers in a market affects the overall supply. This activity focuses on the 'Number of Sellers' component of the TRNGB supply shifters.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Choose a market (e.g., coffee shops in your town, food trucks, online retailers of a specific product).
2. Research how the number of sellers in that market has changed over time (e.g., new businesses entering, existing businesses closing).
3. Create a simulation or model (e.g., using a spreadsheet or online tool) to demonstrate how different numbers of sellers impact the total supply in the market. Vary the number of sellers and record the resulting supply levels.
4. Write a conclusion explaining the relationship between the number of sellers and the overall supply, using evidence from your simulation.

Final Product

What students will submit as the final product of the activityA market simulation model and a written conclusion explaining the impact of the number of sellers on supply.

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of evaluating the impact of the number of sellers in a market on the overall supply, and the standard SS.E.3.12 by describing the number of sellers determinant of supply.
Activity 3

Government Grip: Policy Impact Analysis

Students will investigate how government actions (subsidies, regulations, and business taxes) act as shifters of supply. This activity focuses on the 'Government Actions' component of the TRNGB supply shifters.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Select a specific government policy (e.g., a subsidy for renewable energy, a regulation on pollution from factories, a business tax on imported goods).
2. Research how this policy affects the production costs or incentives for producers in a specific industry.
3. Write an analysis explaining how the government policy shifts the supply curve for the affected product or service. Be sure to address whether it increases or decreases the quantity supplied at various price points.
4. Draw a before-and-after supply and demand graph that illustrates the impact of the government policy on the equilibrium price and quantity in the market.

Final Product

What students will submit as the final product of the activityA policy analysis and accompanying supply and demand graph demonstrating the impact of government actions on supply and market equilibrium.

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of investigating how government subsidies, regulations, and business taxes act as shifters of supply, and the standard SS.E.3.12 by describing the government actions determinant of supply and illustrating its impact on a graph.
Activity 4

Supply Shifter Synthesis: Equilibrium Prediction

Students will synthesize their understanding of all TRNGB supply shifters to predict how multiple factors can simultaneously affect market equilibrium. This activity combines all components of the TRNGB supply shifters.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Choose a product and imagine a scenario where multiple TRNGB shifters are changing at the same time (e.g. a new technology reduces production costs, but a new government regulation increases them).
2. Analyze how each shifter individually would affect the supply curve.
3. Predict the combined effect of all shifters on the supply curve and the market equilibrium.
4. Create a detailed supply and demand graph that illustrates the combined effect of all shifters on the equilibrium price and quantity. Justify your predictions with clear reasoning.

Final Product

What students will submit as the final product of the activityA comprehensive supply and demand graph with a detailed explanation of how multiple supply shifters interact to determine market equilibrium.

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of graphically representing the effects of supply shifters on a supply and demand graph to predict changes in equilibrium price and quantity, and fully addresses the standard SS.E.3.12.
Activity 5

TRNGB Shifter Spotlight: Technology

Students will investigate how advancements or changes in technology can impact the supply of a specific good or service. This activity focuses on the 'Technology' component of the TRNGB supply shifters.

Steps

Here is some basic scaffolding to help students complete the activity.
1. Choose a product or service (e.g., smartphones, electric cars, solar panels).
2. Research how technology has changed the production or delivery of your chosen product/service over the last 5-10 years.
3. Write a short essay explaining how these technological changes have affected the supply of the product/service. Include specific examples and data if possible.
4. Create a supply and demand graph that illustrates how a specific technological change has shifted the supply curve for your chosen product/service. Label all axes and curves clearly.

Final Product

What students will submit as the final product of the activityA well-researched essay and accompanying supply and demand graph demonstrating the impact of technology on supply.

Alignment

How this activity aligns with the learning objectives & standardsAddresses the learning goal of identifying and explaining the effects of changes in technology on the supply curve and market equilibrium, and the standard SS.E.3.12 by describing the technology determinant of supply and illustrating its impact on a graph.
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Rubric & Reflection

Portfolio Rubric

Grading criteria for assessing the overall project portfolio

TRNGB Supply Shifters Portfolio Rubric

Category 1

Conceptual Understanding

Demonstrates understanding of the TRNGB supply shifters and their impact on supply curves.
Criterion 1

Accuracy of Information

Presents correct and well-supported information about the chosen supply shifters and their effects.

Exemplary
4 Points

Information presented is entirely accurate, comprehensive, and demonstrates a deep understanding of the complexities of supply shifters. Sources are impeccably cited.

Proficient
3 Points

Information is mostly accurate and demonstrates a good understanding of supply shifters, with only minor inaccuracies or omissions. Sources are appropriately cited.

Developing
2 Points

Information contains some inaccuracies or gaps in understanding. Demonstrates a basic grasp of supply shifters, but may oversimplify complex relationships. Source citations may be incomplete.

Beginning
1 Points

Information is largely inaccurate or irrelevant. Demonstrates a limited understanding of supply shifters. Sources are missing or improperly cited.

Criterion 2

Application of Concepts

Effectively applies the concepts of TRNGB shifters to real-world examples and scenarios.

Exemplary
4 Points

Applies concepts innovatively to analyze complex real-world scenarios, demonstrating a sophisticated understanding of their implications.

Proficient
3 Points

Applies concepts appropriately to analyze real-world scenarios, demonstrating a thorough understanding of their implications.

Developing
2 Points

Applies concepts inconsistently or superficially to real-world scenarios, demonstrating a basic understanding of their implications.

Beginning
1 Points

Struggles to apply concepts to real-world scenarios, demonstrating a limited understanding of their implications.

Category 2

Analytical Skills

Demonstrates critical thinking and analytical skills in evaluating the impact of supply shifters.
Criterion 1

Cause-and-Effect Analysis

Clearly and logically explains the cause-and-effect relationships between TRNGB shifters and changes in supply.

Exemplary
4 Points

Provides a nuanced and insightful analysis of cause-and-effect relationships, considering multiple perspectives and potential confounding factors.

Proficient
3 Points

Clearly and logically explains the cause-and-effect relationships, providing a well-reasoned analysis of the impact of supply shifters.

Developing
2 Points

Identifies some cause-and-effect relationships, but the explanation may be incomplete or lack depth.

Beginning
1 Points

Struggles to identify or explain the cause-and-effect relationships between supply shifters and changes in supply.

Criterion 2

Prediction and Justification

Accurately predicts the combined effect of multiple shifters on market equilibrium and justifies predictions with clear reasoning.

Exemplary
4 Points

Offers precise and insightful predictions about combined shifter effects, supported by comprehensive reasoning and a deep understanding of market dynamics.

Proficient
3 Points

Accurately predicts combined shifter effects with clear and logical justification.

Developing
2 Points

Attempts to predict combined shifter effects, but the justification may be weak or incomplete.

Beginning
1 Points

Struggles to predict combined shifter effects or provide any justification.

Category 3

Communication and Representation

Effectively communicates findings through written reports, presentations, and graphical representations.
Criterion 1

Clarity and Organization

Presents information in a clear, concise, and well-organized manner.

Exemplary
4 Points

Presents information with exceptional clarity and organization, using sophisticated language and visuals to enhance understanding.

Proficient
3 Points

Presents information in a clear, concise, and well-organized manner, making it easy for the audience to follow.

Developing
2 Points

Presents information in a somewhat disorganized manner, with some lack of clarity.

Beginning
1 Points

Presents information in a disorganized and confusing manner, making it difficult for the audience to understand.

Criterion 2

Graphical Representation

Accurately and effectively uses supply and demand graphs to illustrate the impact of supply shifters.

Exemplary
4 Points

Creates visually compelling and technically accurate graphs that provide deep insights into the effects of supply shifters. Graph is properly labeled.

Proficient
3 Points

Accurately and effectively uses supply and demand graphs to illustrate the impact of supply shifters. Graph is properly labeled.

Developing
2 Points

Creates graphs with some inaccuracies or omissions that limit their effectiveness in illustrating the impact of supply shifters. Graph may be improperly labeled.

Beginning
1 Points

Struggles to create accurate or effective graphs, demonstrating a limited understanding of how to visually represent supply and demand relationships. Graph is improperly labeled.

Reflection Prompts

End-of-project reflection questions to get students to think about their learning
Question 1

Reflecting on the 'Resource Rumble' activity, how did the real-world research on resource costs and availability change your understanding of supply chain dynamics?

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Question 2

In the 'Seller Showdown' simulation, what was the most surprising outcome you observed when varying the number of sellers? How did this influence your perception of market competition?

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Question 3

After completing the 'Government Grip' analysis, do you believe government policies have a predominantly positive or negative impact on market supply? Justify your answer with examples from your research.

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Question 4

Considering the 'Supply Shifter Synthesis' activity, which TRNGB shifter do you now believe has the most significant impact on market equilibrium, and why?

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Question 5

Following the 'TRNGB Shifter Spotlight: Technology' project, how has technology's role in supply affected your view of innovation and its broader economic consequences?

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Question 6

Overall, how has your understanding of the interplay between Technology, Resources, Number of Sellers, and Government Actions (TRNGB) evolved throughout this project?

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Question 7

To what extent do you feel prepared to analyze real-world economic events through the lens of supply shifters?

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Question 8

What was the most challenging aspect of this project, and what strategies did you use to overcome it?

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Question 9

If you were to continue studying supply shifters, what specific questions or scenarios would you want to explore further?

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