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Topic: Supply and demand 

Economics

 Standard 3.  Understands the concept of prices and the interaction of supply and demand in a market economy
  Level III (Grade 6-8)
   Benchmark 5.Understands the "law of demand" (i.e., an increase in the price of a good or service encourages people to look for substitutes, causing the quantity demanded to decrease, and vice versa)
    Knowledge/skill statements
     1.Understands that when the price of a good or service is increased, people look for substitutes causing the quantity demanded to decrease
     2.Understands that when the price of a good or service is decreased, people do not look for substitutes causing the quantity demanded to increase
   Benchmark 6.Understands that an increase in the price of a good or service enables producers to cover higher costs and earn profits, causing the quantity supplied to increase (and vice versa), but that this relationship is true only as long as other factors influencing costs of product and supply do not change
    Knowledge/skill statements
     1.Understands that producers can cover higher costs and earn profits when the price of their product increases
     2.Knows that when the prices of products increase, the quantities supplied increases
     3.Knows that when the prices of products decrease the quantities supplied decrease
     4.Understands that the relationship between price of products and supply is true only as long as other factors influencing cost and supply do not change
  Level IV (Grade 9-12)
   Benchmark 1.Understands that the demand for a product will normally change (i.e., the demand curve will shift) if there is a change in consumers’ incomes, tastes, and preferences, or a change in the prices of related (i.e., complementary or substitute) products
    Knowledge/skill statements
     1.Understands that changes in the demand for a product is normal
     2.Knows that the demand curve shifts as the demand for a product changes
     3.Understands that the demand for a product may change when there is a change in consumers’ incomes
     4.Understands that the demand for a product may change when there is a change in consumers’ tastes
     5.Understands that the demand for a product may change when there is a change in consumers’ preferences
     6.Understands that the demand for a product may change when there is a change in the prices of complimentary products
     7.Understands that the demand for a product may change when there is a change in the prices of substitute products
   Benchmark 2.Understands that the supply of a product will normally change (i.e., the supply curve will shift) if there is a change in technology, in prices of inputs, or in the prices of other products that could be made and sold by producers
    Knowledge/skill statements
     1.Understands that change in the supply of a product is normal
     2.Knows that the supply curve shifts as the supply of a product changes
     3.Knows that a change in technology can change the supply of a product
     4.Knows that a change in the prices of inputs (of a product) can change the supply of a product
     5.Knows that a change in the price of other products that could be made and sold by the producer can change the supply of a product
   Benchmark 3.Understands that changes in supply or demand cause relative prices to change; in turn, buyers and sellers adjust their purchase and sales decisions
    Knowledge/skill statements
     1.Understands that changes in supply cause relative prices to change
     2.Understands that changes in demand cause relative prices to change
     3.Understands that when relative prices change, buyers and sellers adjust their purchase and sales decisions
   Benchmark 4.Understands that a shortage occurs when buyers want to purchase more than producers want to sell at the prevailing price, and a surplus occurs when producers want to sell more than buyers want to purchase at the prevailing price
    Knowledge/skill statements
     1.Understands that a shortage occurs when buyers want to purchase more than producers want to sell at the prevailing price
     2.Understands that a surplus occurs when producers want to sell more than buyers want to purchase at the prevailing price
   Benchmark 5.Understands that shortages or surpluses usually result in price changes for products in a market economy
    Knowledge/skill statements
     1.Understands that shortages usually result in price changes for products in a market economy
     2.Understands that surpluses usually result in price changes for products in a market economy
   Benchmark 6.Understands that when price controls are enforced, shortages and surpluses occur and create long-run allocation problems in the economy
    Knowledge/skill statements
     1.Understands that when price controls are enforced, shortages and surpluses occur
     2.Understands that enforced price controls can create long-run allocation problems in the economy
 Standard 4.  Understands basic features of market structures and exchanges
  Level III (Grade 6-8)
   Benchmark 2.Understands how competition among buyers of a product results in higher prices for the product
    Knowledge/skill statements
     1.Understands that buyers sometimes compete to purchase products
     2.Understands how price of products is affected by competition among buyers
 Standard 5.  Understands unemployment, income, and income distribution in a market economy
  Level III (Grade 6-8)
   Benchmark 2.Understands that wages and salary are influenced by forces of supply and demand for labor, as well as an individual's productivity, education, training and skills
    Knowledge/skill statements
     1.Understands that wages and salary are influenced by supply of labor
     2.Understands that wages and salary are influenced by demand for labor
     3.Understands that wages and salary are influenced by an individual’s productivity
     4.Understands that wages and salary are influenced by an individual’s education
     5.Understands that wages and salary are influenced by an individual’s training and skills
  Level IV (Grade 9-12)
   Benchmark 2.Understands the concept of supply and demand in the labor market (e.g., if wage or salary payments increase, workers will increase the quantity of labor they supply and firms will decrease the quantity of labor they demand)
    Knowledge/skill statements
     1.Understands the concept of supply in the labor market
     2.Understands the concept of demand in the labor market
     3.Knows how changes in wages and salaries may affect levels of supply and demand in the labor market
 Standard 10.  Understands basic concepts about international economics
  Level III (Grade 6-8)
   Benchmark 4.Knows that an exchange rate is the price of one nation’s currency in terms of another nation’s currency, and that exchange rates are determined by the forces of supply and demand
    Knowledge/skill statements
     1.Knows that the exchange rate is the price of one nation’s currency in terms of another nation’s currency
     2.Knows how exchange rates are determined
     3.Understands how supply and demand affect exchange rates
     4.Knows that nations exchange currency