Objective

By the end of this lesson, RR will understand basic economic concepts such as supply and demand, the role of businesses in the economy, and how money is used in everyday life. RR will also engage in fun activities that illustrate these concepts in a hands-on way.

Materials and Prep

• Paper and colored markers or crayons
• Play money (can be made from paper if not available)
• Small items to "sell" (e.g., toys, snacks, or homemade crafts)
• Timer (can use a phone or clock)
• Optional: a whiteboard or large paper for drawing charts

Before the lesson, it would be helpful to explain what economics is in simple terms: "Economics is the study of how people make choices about using resources." This will set the stage for the activities.

Activities

• Market Day Simulation:

  RR will set up a small market with items to sell. Each item will have a price, and RR will use play money to buy and sell items. This will help RR understand supply and demand by adjusting prices based on how many items are available and how many people want to buy them.

• Draw Your Business:

  RR will create a drawing of a business they would like to start. They will think about what products or services they would offer, who their customers would be, and how they would make money. This activity encourages creativity while learning about entrepreneurship.

• Supply and Demand Experiment:

  Using items from the market simulation, RR will change the price of one item and observe how it affects the number of people who want to buy it. For example, if a toy is very popular and there are only a few, RR can increase the price and see how that affects sales.

Talking Points

• "What do you think happens when there are many toys to sell but not many people want to buy them?"
• "Can you tell me what you think happens to the price if lots of people want a toy but there are only a few available?"
• "Why do you think businesses are important for our communities?"
• "What do you think makes a good product that people would want to buy?"
• "How do you feel when you buy something with your own money? Why is it special?"
• "What are some things you would like to sell if you had your own business?"
• "How do we decide what to spend our money on? What is most important to you?"
• "Can you think of a time when you wanted something but had to save up for it? How did that feel?"