Students will be able to:
- Identify business competition in the community.
- Explain how the opening of a second pizza shop in a small community affects prices, profits, service, quality and choices.
- Identify benefits to consumers when competition is present in the marketplace.
In this economics lesson, students will identify and evaluate market competition using pizza shops.
Distribute the Business Competitors in Your Community worksheet to students. Challenge them to identify 4 markets in their community and competitors in each of the markets. Examples could include: fast food, discount stores, banks, gas stations, grocery stores. Ask the class the following question, “What is competition in the marketplace?” The effort of two or more individuals or organizations to get the business of others by offering the best deal. Consumers compete with other consumers for goods and services. Producers compete with other producers for sales to consumers. Explain to students that competition among buyers can happen when there is more than one business selling the same or similar item. They are competing for customers. Competition can also happen when there is one business, but many customers competing to get limited goods.
Tell students that today’s lesson is about competition among businesses. These businesses have to convince customers to buy their items. Consumers get to make a choice about where to spend their money.
Open the PowerPoint Slides and present the slides on a projector screen. Show each slide to explain strategies businesses use to attract consumers when there is competition in the marketplace.
Open the PowerPoint slide deck called The Great Smalltown Pizza Battles. Divide students into groups of 3-4 students. Project “The Great Smalltown Pizza Battle” slide deck. After each slide, challenge student groups to discuss in groups the strategy that Mo, the new pizza store in town, should use to compete with Tony’s Pizzeria. Have each group report out their strategy with each slide scenario.
Project You Are Here’s Pizza, Pizza, or Pizza? to the entire class or assign the link to students, if 1:1 devices are available. Read more about You Are Here. Challenge students to visit After hearing the incentives, students should record a video presentation, create a recording, or write down a paragraph defending their choice as to whether they would select Mama Toni’s, Slices Pizza or Ye Olde Brick Ovenry.
Play the Kahoot! Game with your class. Divide the students into teams or play using 1-1 devices.
Competition in my Community: Have students record an example of competition in their community. They may bring flyers, newspaper ads or record their example(s) of competition.
Competition Research: Challenge students to select a market in the community. Examine 3 competitors. Document evidence of incentives offered to attract consumers. Present their findings to the class.
Grades 3-5, 6-8
AP Macroeconomic Series: Why Do We Need Other People’s Money? (Helping Students Master the For-Ex Market)