Thursday, September 21st, 2006

The Price System


Students shall be able to

  1. identify market equilibrium,

  2. identify market equilibrium graphically,

  3. define equilibrium price,

  4. define equilibrium quantity,

  5. name the two forces that are equal at equilibrium,

  6. explain why the equilibrium price is special,

  7. define surplus,

  8. define shortage,

  9. identify surplus graphically,

  10. identify shortage graphically,

  11. identify the effect of changes in supply and demand on equilibrium price and quantity, and

  12. define indeterminate.



  1. Lecture/discussion: equilibrium and disequilibrium

  2. Students shall create eight graphs to show all possible combinations of changes in supply and demand, and the effect of those changes on equilibrium price and quantity.

Assignment: Take notes. Create the graphs as instructed in class on the right side of your notebook.



Monitor and adjust, as needed. Check the graphs when notebooks are collected.


TEKS involved: 4A, 4B, 5A, 7A, 7B, 10A, 10B, 19A, 21A, 21B, 23B, 24A, 24B, 24D