Post Lesson 3/Pre lesson 4

Today we focused on:
- Our problem: we have a scarcity of knowledge. Knowledge is often kept in small pieces
- Prices solve this knowledge problem by conveying the knowledge we need to know. Prices convey what things are "worth" relative to other things we could have
- Competition is important for prices to "work" in the way we desire
- Even one small price change can have dramatic effects on all sorts of other goods both directly and indirectly
- Supply and Demand both need to be considered and can help us understand some of the effects that may occur

In particular think about the question of prices in low-income neighborhoods. When you all only considered the "buyers" you failed to consider the incentives and costs for sellers...this means that you left out more than half the story. Where else might you fail to consider alternative viewpoints?\


Instructions for next time:

• Your Information Sheet is FOR YOUR EYES ONLY
• You have two scenarios (sessions). We will play each out. Each session will have 2 rounds, so you'll play your first scenario twice and then your second scenario twice.
• Your goal is to make as much profit as possible by trading (buying/selling apples) with others in the class.
• In order to make a trade you must agree upon a price, fill out a sales sheet at the front of the room, and hand it to me.
• When I receive a sales sheet I will record the information on the board.
• Once you have made a trade in the round you are done (you can only make one trade per round) and may sit down.