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A Classroom Experiment Demonstrating the Generation of a Market Demand Function and the Determination of Equilibrium Price
Dennis J. Weidenaar
The Journal of Economic Education
Vol. 3, No. 2 (Spring, 1972), pp. 94-100
Published by: Taylor & Francis, Ltd.
Stable URL: http://www.jstor.org/stable/1181994
Page Count: 7
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Economics instructors continue to look for simple and effective means of motivating students while conveying important basic principles. Dennis Weidenaar describes a supply and demand simulation which can be used in any classroom to show how a market demand function is generated and how equilibrium price is determined. Involving little in the way of preparation, this activity simply calls for the sale of apples to students by the instructor, with individual and aggregate demand schedules being calculated. Such concepts as price and income elasticity, profit maximization, opportunity cost, market organization (monopoly, perfect competition and monopsony), consumer's and producer's surplus, and total, marginal and average revenue and cost can be illustrated through the use of the simulation and the suggested discussion questions.
The Journal of Economic Education © 1972 Taylor & Francis, Ltd.