Nov 6, 2020

0000004327 00000 n Producers of Silly Bandz are sensitive to the idea of raising the price for their product; part of their marketing strategy is that their toy is a cheap alternative to video games and other children's toys that are more expensive. In this lesson, you will use the case studies of Hula Hoops and Silly Bandz to learn about the concepts of supply, demand, price, equilibrium, surplus, and shortage. registered in England (Company No 02017289) with its registered office at 26 Red Lion If not, what might the price due in the future given a continued increase in demand? Supply - http://www.econedlink.org/interactives/index.php?iid=221&type=student, 2. Review the concepts of the "Law of Supply" and the "Law of Demand.". Group Activity. 0000001192 00000 n x�b```b``���d�32 � P��9&���BP�D�rLW.�Ĕ�����ж`愅�[���Y��ݻ`]�솤�uR��Z�/�t.��%��`���RCGک=��my�n]ϻu+N��w |*d�!�����B� 0000003018 00000 n �\4\+=��y�D�3�9h����,����P/�~�9h#̀栭� ��A����f@�l$^ 809 0 obj <> endobj The rise in demand for Silly Bandz; however, has not been accompanied by an increase in the price for the product. 8. The Law of Supply states that as the price of a good or service that producers are willing and able to offer for sale during a certain time period rises (or falls), the quantity of that good or service supplied rises (or falls). The case studies for Hula Hoops and Silly Bandz exemplify how changes in demand for consumer products can shift tremendously over short periods. |lP�sms���㢗y��X�ܱ�Y3�n��`G�/=H��2�Up�p�J�/�l�n���q��x�7^z�%�����K|���|����=H��7|$�S� If the price of a product is too low, demand will exceed supply and there will be a shortage of goods or services. You are walked through three different supply and demand schedules and shown graphically how the demand curve for Hula Hoops changed from the introduction of the Hula Hoops into the marketplace to the height of their popularity in 1958. Students are walked through three different supply and demand schedules and shown graphically how the demand line for Hula Hoops changed from the introduction of the Hula Hoops into the marketplace to the height of their popularity in 1958. If the supply of a product matches the demand for the product, the price is said to be at equilibrium and the quantity supplied will match the quantity demanded. endstream endobj 822 0 obj<>/Size 809/Type/XRef>>stream For example, demand for steel is strongly linked to the demand for new vehicles and other manufactured products, so that when an economy goes into a recession, so we expect the demand for steel to decline likewise. hڂ�h�L�2�9h3}�����8 ρ_y�@^b����yY�iT��AAE6������ %�_6���2le� Section I Vinnie’s Pizzeria -The Story of a Small Business In a small town in New Jersey, Vinnie’s Pizzeria was started back in 1961. �0ȴZ|I�S��@�Tb�P��[�F��ˢX�� ifV��bX4�4;�Q\4��%��= n0 �Ľ Tes Global Ltd is Similarly today, Silly Bandz has taken off in sales since the summer of 2008. trailer Conditions. Behavioural Economics - Article with questions, Demand and Supply and Calculation case study from a newspaper article, A Level Labour Market Questions from case study, Structure Scaffold for A Level Economics Essays, Economics Lesson - Oligopoly, Oligopolies, Cartels and Collusion, Sociology of the Family (20 Lessons) [ GCSE Sociology ] Families, AQA A-level Economics Price determination in a competitive market knowledge organiser. Take the quiz when you are done watching the video and submit it. Let us make an in-depth study of the shifts in demand and supply. 0000004193 00000 n Sales of the Hula Hoops sky-rocketed during the year, in the first months over 25 million were sold, within the year over 100 million. Use the following link (Silly Bandz Case Study) http://www.econedlink.org/interactives/EconEdLink-interactive-tool-player.php?filename=SillyBandz21.swf&lid=961, and view the tutorial. Subsequently, demand skyrocketed for Hula Hoops and led to a large increase in the price level as consumers who wanted to buy a Hula Hoop were willing and able to pay more for the toy. ��� P� �`KKK � ��X$�԰!�T�l�Y���d���Xl�7��)�����t 0000007272 00000 n 5. To do this, we made use of the ceteris paribus assump­tion and held all other factors which influence demand and supply constant. Given their unwillingness to raise prices, continued excess demand can only be met by increasing the supply, which include substitute brands entering the market and gathering market share. This project has students write a short story about a fictitious business that is affected by as many supply and demand shifters as the students can come up with. http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769http://abcnews.go.com/Nightline/video/silly-bandz-latest-fad-11686769, www.usatoday.com/money/smallbusiness/2010-07-01-sillybandz01_CV_N.htm. 0000004242 00000 n *ʰT�a3(�(�#�삊>��(�fPPQ�������L|(*4|�����И�����������,��)*t���G?��?������/E����LYE���)��K�`)�4VJf+�4\�h�p�,?E��ܩ�LѤ�F��X��". A shortage is the situation that results when the quantity demanded for a product exceeds the quantity supplied. Using your knowledge of the laws of supply and demand, the Hula Hoops Case Study, the news article and video clip on the market for Silly Bandz and the Silly Bandz Case Study to examine whether the current price of $5, for a package of Silly Bandz represents an equilibrium price. Use the following link (Silly Bandz Case Study), The case studies for Hula Hoops and Silly Bandz exemplify how changes in demand for consumer products can shift tremendously over short periods. Today, Brainchild Products, the producers of Silly Bandz are experiencing a large increase in demand for their products similar to that of Hula Hoops in 1958. �)� �y The following descriptions of supply and demand assume a perfectly competitive market, rational consumers, and free entry and exit into the market. 0000001528 00000 n Using their knowledge of the Law of Supply and Demand, and the Hula Hoops Case Study, ask students to view the YouTube video, … This generally happens because the price of the product is above the market equilibrium price. startxref H�\��nGE���Y&N���m��y�J�ﮮ�P���>U��֝���Ǭ?>��|>ާ������}j�s������6{=�W���Q��_^����u�����N��v����S��v�}�~��x��_>]N�����T���ܪݎ��~U��g _ޯ��d��4{��>�����M�o���Ib8z��v�j�|~��a���CkO+;���!�!�l�`K����!x$x��`G��=�~A�L����!P�JP��lA�*d�!�����B� The value-scales of producers and consumers are coordinated through the price system. So long we have examined how markets work when the only factor that influences demand and supply is the price of the commodity under consideration. Supply and Demand Project lesson plan template and teaching resources.

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