Wednesday, February 3, 2010

Toyota Recall for AP Microeconomics

Summary: Supply and demand. Price theory.

Show the video and ask students what will change--supply or demand? Next, discuss how price and quantity would change. Discuss how automobiles are produced in an oligopoly market. Discuss how prices are set either through price leadership, kinked demand curve, or strategic interdependence. As a review of positive vs. normative economics, discuss whether the government should require more regulation.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.


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