Are your abilities to apply economic concepts ready for the real world? You will be able to test that ability in a cyber-world where you can decide to sell lemonade in a host of different cities, in all kinds of weather, and with a cyber-economist giving you daily advice. Before you slip into the cyber-world, however, you may need to brush up on all those concepts you have been learning.
In this lesson you will describe:
- What you gained and what you gave up when you made certain choices.
- Who producers and consumers are.
- How prices change when the number of buyers in a market change.
- The risks entrepreneurs must take in order to open a business.
Click on picture painted by Norman Rockwell . This old-fashioned picture will serve as a reminder of what Grandma's lemonade stand might have been like and the concepts it teaches.
You should use this PDF worksheet to help with the following lemonade stand activity.
Click on the Lemonade Stand Cyber Version . What city should you sell in? Clicking the cities allow you 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!
Entrepreneurs deal with choices, scarcity issues, and non-price determinants in demand every day. Would you be willing to become an entrepreneur?
Answer the following questions:
- In what circumstances did you succeed?
- When did you fail?
- How was the profit figured?
- What would you do differently?
- How did the buyers affect the price you charged?
- How did your pricing affect the numbers of buyers?
- What choices had to be made?
- What did you gain by those choices and what did you give up?
- What are the risks taken by the entrepreneurs?