Supply & Demand - Faculty.utep.edu

Read and discuss these instructions:This bag contains your resources. You must usethese resources and no other, but you may usethem in any way you choose. The resources areexactly what they appear to be: chocolate,marshmallows, and graham crackers; they maynot be used to represent anything other thanthat.Open your bag and study the contents. Discusswhat item or items your group can producewith these "resources." Due to scarcity, yourgroup may have difficulty in producing onecomplete unit of "product" for each groupmember.Compare the available resources in your bag tothe "demand" for the finished product. Howmany units can be produced? How will youproduce them? How will you distribute them?(e.g. Will each member of the group receive acompleted unit, or will only some of the membersreceive the product? If not everyonereceives one, how will you determine whoreceives one?)Summary ActivityOnce you've produced the product, answer thefollowing questions. Take notes as you determinethe answers.1. What was your first thought when youopened the bag and examined the amountof resources?2. What did you then have to decide?3. Why did you have to think about how toproduce them, and how they would bedistributed?4. Were each of the four factors of productionused in making your product?S. What resources were used?6. What type of skills and tools did the workersneed?7. Create a chart showing the factors of productionthat are combined into differentconsumer products that the members ofyour group buy.UNIT 1 FUNDAMENTAL ECONOMIC CONCEPTS 31