Wednesday, October 21, 2009

AP Economics: 22 October 2009

Prayer:
Current events:

Niall Ferguson: The Dollar Is Finished And The Chinese Are Dumping It

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Niall Ferguson has written The War of the World: Twentieth-Century Conflict and the Descent of the West and Empire: The Rise and Demise of the British World Order and the Lessons for Global Power, among other important works of economic history.

Today's lesson plan and HW is available on the blog: http://gmicksmithsocialstudies.blogspot.com/

Email: gmsmith@shanahan.org

The Shanawiki page (http://shanawiki.wikispaces.com/) has updated class information.

LibraryThing has bibliographic resources.

I moved the "Blog Archive" to the top right on the blog page so it should be easier to find the daily lesson, HW, and other class material.

Chapter Three, Demand and Supply

Extended Examples in the Chapter

Examples Used in the End-of-Chapter Questions

For Further Analysis

The Supply and Demand Effects of the Increased Use of Ethanol

Handout 3-1 is an in-class group exercise with your small group.

Students are asked to draw graphs illustrating shifts in demand and supply
and changes in quantity demanded and supplied. Asking students to document
research about specifics in this topic (for example, changes in planted acreage).

Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.

Web-based Exercise

What’s Been Driving Gasoline Prices?

This example can be used as an in-class group exercise.

Asking students to perform (and document) additional research allows you
to use it as a case study or group project as well. For example, students can be
asked to document gasoline sales to see if, as predicted, an increase in demand
results in both a higher price and a greater quantity sold.

Learning objectives: application of concepts of changes in quantity demanded
and quantity supplied versus changes in demand and supply; demonstration of mastery of graphing techniques; and reinforcement of critical thinking skills.

The Supply and Demand Effects of the Increased Use of Ethanol

Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,” as well as “change in demand” and “change in supply.”

Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.

Send HW in email to gmsmith@shanahan.org for this exercise.

If you already finished Hand-out 3.1 in class; you have no HW; otherwise, finish whatever we did not get to finish in class.

We got as far as:

Supply and Demand

HANDOUT 3

Draw a supply and demand graph showing the market for corn in equilibrium. Label the demand curve as “DOld” and the supply curve as “S”. Then illustrate the effect of an increased demand for corn due to its being used to produce ethanol. Explain the changes in price and equilibrium quantity using the vocabulary of “changes in quantity demanded,” and “changes in quantity supplied,”
as well as “change in demand” and “change in supply.”

Use a supply and demand graph to illustrate and explain the impact of a higher price of corn on any one of a wide variety of food products; be sure to include the effect on the cost of high-fructose corn syrup.

Use a supply and demand graph to illustrate and explain the impact of higher corn price on cost of animal feeds and the resulting impact on prices of beef, pork, etc.

Use a supply and demand graph to illustrate the response by farmers to higher corn prices in terms of planting more acres in corn.

Will the increased planting of corn lead to decreased production of other crops such as soybeans and wheat? If so, what is the impact on the prices of goods that use those ingredients? Use a supply and demand graph to illustrate and explain.