Name of Lesson: Market Equilibrium

Subject: International Baccalaureate Economics Prepared by: Lydia Georgieva

Overview and Purpose: Students will use laptops with Internet connection and Microsoft Office apps, as well as various online apps such as Diigo bookmarking and Blogs to learn about Market equilibrium theory. Educational Standards

IB syllabus and skills required for that topic

Objectives: At the end of the lesson students will be able to: Define Market equilibrium (Knowledge Level) Explain, using diagrams, how demand and supply interact to produce market equilibrium. (Analysis Level) explain Analyse, using diagrams and with reference to excess demand or excess supply, how changes in the determinants of demand and/or supply result in a new market equilibrium. (Analysis Level) analyze Calculate the equilibrium price and equilibrium quantity from linear demand and supply functions. (Excel sheet)(Analysis Level) Plot demand and supply curves from linear functions, and identify the equilibrium price and equilibrium quantity. (Excel sheet) State the quantity of excess demand or excess supply in the above diagrams. Apply the market equilibrium theory to a suitable news extract (Internet search for news extract) (Application Level) apply

Materials Needed: Laptops with Internet connection Calculators, Excel Power Point application video and audio recording devices Other Resources: (websites, videos, books, etc.) IB Course Companion Triple A BACC Pack, Module One- Microeconomics

Information:

Read online : http://www.amosweb.com/cgibin/awb_nav.pl?s=wpd&c=dsp&k=market%20disequilibrium Read selected portions of your Microeconomics BACC Pack go to: C.23.Market Equilibrium read up to and including C.36. Allocative Efficiency. and your IB Course Companion (Ch. 3, p.35-p.45).

Follow-up/starter: Participate in an online/class discussion: "What are the limitations of the use of diagrams and charts in economics?"

2 3

Bookmark an article at our Class Bookmarks (Diigo group) site on the topic of 'equilibrium' or 'price mechanism'. Complete and submit a worksheet as an assignment- a worksheet with linear demand and supply functions is provided by the teacher. Students are required to use Excel sheet to calculate and plot the market diagrams and identify excess demand/supply and explain how the market forces work to establish a new equilibrium on the market. Individual student activity that examines one local market- Research a local market and prepare a Power Point Narrated presentation. Post the Presentation in our class wiki: Local Market Research. View the presentations of at least two classmates and comment on : WWW- What Went Well; EBI- Even Better If... Use the bookmarked article in activity 3 and write a blog entry on how the theory of market equilibrium applies to the situation described in the article chosen.

Verification:

3 4 5

Online/class discussion to consolidate understanding of the market equilibrium theory- checking knowledge of definition of market equilibrium, excess supply and excess demand. After all students have finished, the answers and the diagrams of a student (with correct answers and well drawn and fully labelled diagram) are displayed on the whiteboard/LCD screen. In the online course environment, those are submitted to the Dropbox folder for the week, checked by the teacher and feedback is provided Diigo bookmarks- checked by the teacher Blogs- peer and teacher reviewed- feedback in each students blog Wiki activity: Local Market research- peer and teacher reviewed.

Activity: There are several activities in this unit of work Activity 1: Reading: can be assigned as a homework activity prior to the day when the unit of work is planned. Follow-up/lesson starter: Discussion: a starter activity for this unit of work. In an online course it is conducted via the online discussion forum. In a classroom environment it can be conducted as a short classroom discussion bringing the TOK aspects of the IB into focus: Discussion question: What are the limitations of the use of diagrams and charts in economics? Activity 2: Students conduct an Internet search for a suitable news extract and bookmark in the Diigo class bookmarking site, practicing applying the required tags : equilibrium, price mechanism Pre-requisite: earlier in the course Diigo bookmarking has been introduced and class group created by the teacher Activity 3: Students practice using Excel sheet to calculate and plot linear demand and supply functions from a given set of data by the teacher. Prior knowledge applied: non-price determinants of demand and supply resulting in a shift of the demand/supply curve to form disequilibrium. One student displays her/his Excel document and diagram on the whiteboard/LCD screen and the rest compare their answers. Activity 4: Can be assigned as a homework assignment and class presentation in the next lesson- in a face-2-face context. In the online course: students upload their narrated presentations in the online wiki - view and comment on at least two presentations in terms of : WWW and EBI: what went well; even better if... In the online course context this activity reinforces the internationalism of our curriculum. Activity 5: Blogging skills to apply and analyze the theory to a real world situation presented in the news extracts bookmarked earlier. Notes Tech Tools used in the lesson: Excel sheet Interactive textbook viewed on laptops Wiki activity: Narrated Power Point Presentation- Local Market Research: may require interviews with shopkeepers, recorded and integrated in the presentation; pictures taken and integrated into the presentation, voice recording.

Bookmarking activity: Diigo group, Internet browsing for suitable news extractbookmarking skills and familiarity with Diigo bookmarks Blog entry: blogging skills