Need idea for teen supply demand exercise

[Kelly]

Folks

I'm teaching investing basics at a local high school on Monday. I have an idea that I will relate basic supply and demand to stock prices. I need some form of simple exercise to demonstrate supply and demand. I've found one idea online that involves splitting the class in half and asking one half (by way of fill in form) how many hours per week they'd work at a car wash if the were paid $1, $5, $10 or $15 per hour.

The other halve of the class writes down how many car washes they would buy each month at those same prices.

I guess it will prove the point but appears like you'd get lop sided results with kids working 30 hrs per week and drivers buying 2 or 3 washes.

Can anyone think of a better scenario??

Many thanks!

Kelly

[Tamales]

Wouldn't that be an experiment in elasticity of demand?

Maybe a Khan academy video like this one will give some ideas.
https://www.youtube.com/watch?v=PEMkfgr ... QG6F-RefLt

[whatusername?]

I don't have an exercise, but the rise and fall of the "beanie baby fad" is the best supply-demand illustration I can think of that would likely keep teens' attention. The slideshow - which wouldn't be complete without the pictures of 50 year old men "investing" in hundreds of stuffed animals - could be entertaining.

[bigred77]

Tell them you brought in cokes and anyone who wants one can buy one for a dollar. Take orders.

Then tell them you forgot and only have one coke. Ask everyone who placed an order originally if they would be willing to pay more than a dollar. Auction it off.

[dm200]

It seems to me that there are, to some degree at least, differences in supply-demand for consumer products/services and supply-demand for investing. "Investing" (in equities, at least) is buying (or valuing) a company/business. Investors will pay more for a profitable company/business (or one they believe will be profitable) than for a company where profits are slim.

[Leeraar]

I am not sscritic, but if you Google:

supply and demand class exercise

you will find a lot of suggestions.

L.

(PS: sscritic was adept at providing good information while kvetching that you could look it up yourself. )

[millionaretrucker]

I just listened to a Yale capitalism lecture, and the professor did something similar to your car wash idea. He used football tickets, and the students, through their auction period came very close to the face value of the ticket.
The proffessor stated that every year the students nearly get it exactly. Does your school have a popular sports team? Perhaps that would work.

[TorturedRegret]

Having them bid for something real like the Coke is much better than a theoretical car wash example.
That is on the more impactful track.

[LiveSimple]

The school got the next generation iPhone that is a prototype of the 2016 release, 10 in numbers. What are you willing to pay, if you want one !

Same thought will work for other products as well, a next generation computer game, next generation car, etc.

[Fat-Tailed Contagion]

I learned a lesson via "investing" in baseball cards.

(I now wonder if the Fed is the new Topps? - time will tell)

You could also add cabbage patch dolls or beanie babies to cover more interests of a teen audience.

Although they may be too young to be aware of any of these phenomena.

[HurdyGurdy]

You may want to check

Experiments with Economic Principles: Microeconomics

http://www.econ.ucsb.edu/~tedb/eep/eep.html

[itstoomuch]

In my time, the demand for wheels is proportional to the ability to get a date.

[barnaclebob]

Just don't use iphones or something that kids stereotypically are associated with. All I would hear is some old guy saying "you kids love your iphones right, well what would you pay if....." by then I'd have lost respect and tuned out.