Markets, Efficiency, and Price Signals

Holiday gift-giving seasons can be lucrative for an individual business, but does a profitable season bode well for the market as a whole? A video from Crash Course Economics discusses how giving gifts to people who are uninterested in the product can be a waste of resources, as well as how competitive markets, price signals, and government regulation affect the ways businesses produce their goods and consumers spend their money. 

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CCSS: Adaptable
Instructional Ideas

  • Prompt learners to write a letter to a company they have patronized in the past regarding prices that they feel are unfair, adding supporting details and anecdotal evidence when needed
  • Bring in newspaper advertisements to discuss examples of price signals or predatory pricing
Classroom Considerations

  • Comment section is open to the public and may 
  • Features a humorous false ending at 9:00; keep watching for the actual ending
Pros

  • Weighs the benefits and drawbacks to government regulation in the free market
  • Uses the term crowdfunding to describe capitalism in a way teenagers can understand
Cons

  • None