NOT your Grandma's Lemonade Stand
This lesson printed from:
Posted March 15, 2002
Grades: 3-5, 6-8
Author: Mickey Ebert
Posted: March 15, 2002
Updated: January 23, 2013
After a review of elementary economic concepts, students will apply their understanding by playing an online computer game, Lemonade Stand. This game has the students competing against themselves and others to earn the biggest profit in 25 days time (approximately 15 minutes computer time). "Daily" economic advice helps students find out where they fail in understanding the demand and supply sides of economics. Fun!
- Identify what they gain and what they give up when they make choices.
- Identify people as consumers and/or producers.
- Predict how prices change when the number of buyers in a market
- Identify the risk of being an entrepreneur.
Are your students able to apply economic concepts in the real world? In this lesson the students will be able to test that ability in a cyber-world where they can decide to sell lemonade in a host of different cities, in all kinds of weather, and with a cyber-economist giving them daily advice. Before they slip into the cyber-world, however, they need to brush up on all those concepts they have been learning.
Click on picture painted by Norman Rockwel . This old-fashioned picture will serve as a reminder of what Grandma's lemonade stand might have been like and the concepts it teaches.
The students are asked to answer questions about the Norman Rockwell picture in this online interactive activity.
Students should use this PDF worksheet to help with the following lemonade stand activity.
The students need to click on the Lemonade Stand Cyber Version and discuss the possible decisions they must make in order to play the game. What city should they sell in? Clicking the cities allow the students to see the data needed for making a decision. How many cups to buy, how much to charge, how much to spend for advertising - these are all the normal decisions made by entrepreneurs every day!
[NOTE: A lemonade stand has the potential for teaching most economic standards! It is hard to limit just what the students need to know in order to apply the concepts. Prior knowledge of these concepts will influence how "deep" the teacher needs to go with the students. It should be noted that the even though the lesson deals with mostly the demand side of the lemonade stand, the game handles both the demand and the supply side.]
Entrepreneurs deal with choices, scarcity issues, and non-price determinants in demand every day. Would you be willing to become an entrepreneur?
After the students play the game, a reflection time would be advisable.
- In what circumstances did they succeed?
- When did they fail? How was the profit figured?
- What would they do differently?
- Did they listen to the expert advice?
- How did the buyers affect the price they charged?
- How did their pricing affect the numbers of buyers?
- What choices had to be made?
- What did they gain by those choices and what did they give up?
- What are the risks taken by the entrepreneurs?
Have the students play the game again and change selling locations. Have them charge more (or less) than they did the first time. Have them change just one thing and see what a difference it makes. Possibilities are endless!