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3314-02-04-Student Guide (1)

This student guide outlines an assignment to create graphs and a circular flow chart related to Bond's Gym, focusing on supply and demand curves. Students will gather data from potential customers and analyze the elasticity of demand and supply, as well as determine an equilibrium price for memberships. The assignment also includes completing a flow chart to illustrate the economic relationship between the gym and its members.

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thaniatrejo8
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22 views

3314-02-04-Student Guide (1)

This student guide outlines an assignment to create graphs and a circular flow chart related to Bond's Gym, focusing on supply and demand curves. Students will gather data from potential customers and analyze the elasticity of demand and supply, as well as determine an equilibrium price for memberships. The assignment also includes completing a flow chart to illustrate the economic relationship between the gym and its members.

Uploaded by

thaniatrejo8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Creating Graphs to Reach Equilibrium

Student Guide

Summary
In this assignment, you will create two graphs and a circular flow chart. You
will also answer questions about Bond's Gym, the business you are
supporting.

Assignment Instructions
1. Gather materials and necessary information.

a) Ask your teacher which word processing software you will be using.

b) Keep your lesson and assignment open in case you need to review
what you have learned.

2. Read and follow each set of instructions carefully.

a) To create each graph and complete the circular flow chart, insert
shapes and textboxes using your word processing software. To do this
in Microsoft Word®:
i) Click on the “Insert” tab
ii) Click on “Shapes” in the “Illustrations” section, and select a line
or arrow shape
iii) Use the mouse cursor to draw the line or arrow on the graph

b) If you are using different word processing software, be sure to ask your
teacher if you aren’t sure how to accomplish this.

c) Make sure you complete the questions on each page.

Page 1
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.
Student Guide (continued)

Section 1: Supply and Demand Curves


The owner of Bond's Gym has paid you to carry out a survey of potential
customers. You asked 600 potential customers what price they would be
willing to pay to join the gym. Then, the owner provided you data about the
number of customers that can be admitted as members at each membership
price.

This allowed you to create a combined supply and demand schedule for
Bond's.

Supply and Demand Schedule


Membership Price Membership Memberships
Applications Available
$0 600 0

$15 450 100

$30 300 200

$45 150 300

$60 0 400

1. Using the data in the supply and demand schedule, create demand and
supply curves for Bond's Gym on the following graph. Be sure to use
textboxes to label the supply curve as S and the demand curve as D.

Page 2
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.
Student Guide (continued)

(10 points)

2. Is the demand curve shallow or steep? What does this mean about the
elasticity of the demand for memberships? How does this elasticity
affect the impact of price changes on membership sales? (5 points)

3. Is the supply curve shallow or steep? What does this mean about the
elasticity of supply for memberships? How does this elasticity impact
the number of memberships supplied when prices change? (5 points)

Page 3
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.
Student Guide (continued)

Section 2: Equilibrium and Incentives


Now, you will graph a recommended course of action for Bond's Gym.

1. Create a graph that demonstrates equilibrium and excess demand.


Make sure your graph includes the same supply and demand curves
that you just created. In addition, label the point of equilibrium, draw a

line showing the current price at Bond's ($10), and label the excess
demand on the graph. (10 points)
2. Based upon the graph you created, what price should Bond's Gym
charge for memberships in order to reach equilibrium? (5 points)

3. If Bond's Gym raises prices to your recommended price, how will this
Page 4
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.
Student Guide (continued)

affect demand for their product? (5 points)

Page 5
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.
Student Guide (continued)

Section 3: Circular Flow Charts and Economic


Relationships
1. Complete the flow chart to show the economic relationship between
Bond’s Gym and its members. (10 points)

Your flow chart should include:


a. a title.
b. labels for the arrows.

2. Use the completed flow chart to explain the economic relationship


between Bond’s Gym and its members. (5 points)

3. How would raising the prices to your recommended price affect this
relationship? (5 points)

Page 6
© 2024 Imagine Learning, LLC. All Rights Reserved. May not be copied, modified, sold, or redistributed in any form
without permission.

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