Since childhood, my daughter dreamed of becoming a teacher. She was babysitting children from the age of 12, worked as a tutor, later volunteered in schools.
Finally, her dream came true and after graduating from the teaching program of the University of Toronto, she was taken to school, teaching economics in the 12th grade. A couple of months later, she had an open lesson, where the director, the people from the board (analogue to Gorono), the methodists, to determine whether to leave her or not.
She was very nervous and asked me to help make a lesson plan. What we did.
The theme of the lesson was production, consumption and pricing.
We started with an investment of $15. There were 30 people in the class and she bought 30 chewbacks, 50 cents each.
When she came to class, she immediately stated that she had a gum. Now there will be an auction, and the one who wins will have to pay the real money. and so:
“Who is willing to get the gum for free?”
30 hands rose and the first point was placed on the chart on the board: (30,0).
After each increase in the price, the number of wishes decreased, the schedule was replenished with new points, until one guy, Jonathan, rather from principle, bought it for 7 backs, solemnly handed them over, took the purchase and the last point (1,7) adorned the schedule.
This is called the consumer curve (demand). The young teacher explained.
“And now I have good news for everyone except Jonathan. I actually bought gummies for everyone!” - she added, distributed gummies to everyone and immediately regretted it.
“I didn’t leave it to myself! There will be another auction. Who is willing to sell me a gum for $10?” Again, 30 hands rose, and the point (30, 10) appeared on the chart. The price dropped, the number of wishes decreased until the point (0.0) finished the picture.
This is called the supply curve (Supply curve).“She explained.
“Tell me where they cross?”
"At the point (10,0.5)" - the choir said the children, director and methodists of the board, watching all this action with full attention.
“It is right! This means that for 50 cents, the number of people who want to buy gum is equal to the number of people who want to sell it. This is how the market price is formed. That’s exactly what it’s worth!”
After the lesson, the sensitive directors and methodists approached her and confessed:
“Honestly, we have only now understood how the price is formed!”