Activity: In the Chips — A Market in Computer Chips

Introduction:

Understanding how markets work and the role of prices within markets is an important key to being able to explain and predict economic behavior. In true markets, prices are determined by the interaction of buyers and sellers.

Video Demonstration:

Concepts:

Supply
Demand
Equilibrium Price (or Market Clearing Price)
Competition

Lesson Description:

This lesson simulates a market for computer chips. Students, acting as buyers and sellers, will experience the competitive nature of markets. As a result, they will see how competition influences the price of goods and the decisions of buyers and sellers.

Time Required:

1-2 class periods

Materials

• Found in Screen Share Visuals
  • How to play In the Chips
• Found in Download & Print
  • Student transaction sheet – 1 per student
  • Market Tally Sheet – 1 per student
  • Student buyer and seller cards (print on 2 different colors or use colored arm bands for sellers if buyer and seller cards are the same color)

This lesson has been modified, for use in Foundation for Teaching Economics materials by Kathy Ratté and Kenneth Leonard, from The Big Apple published in In The Marketplace, 1978. Used with permission. Office of the Superintendent of Public Instruction, State of Washington.