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LESSON
PLAN: ESTELLA’S SWAP
Lesson Plan
Summary:
Estela is excited as she travels to the Swap Meet
to sell her music box to earn money for dancing lessons. The
unexpected happens as a wild wind sweeps away many goods of the vendors –
including the paper flowers of a woman who very much likes Estela’s music
box. What happens next? Will Estela sell the music box and earn
enough money for her dancing lessons? In this story, Estela learns
the joy of giving – and receiving.
Concept: Price
Definition: The price is what people pay when
they purchase a good or service or what they receive when they sell a good
or service. Market prices are determined by the
buying and selling decisions of consumers and producers.
Comprehension
Questions
What good was Estela hoping to sell
at the Swap Meet? What price was she hoping to receive?
Her
prized music box. $10
What other goods were vendors
selling at the Swap Meet?
Flowers, hot dogs, chili, popcorn, hub
caps, and many other goods not mentioned or seen in the story.
How did people determine the prices
for goods sold at the Swap Meet?
People haggled. That is, they
bid back and forth until a price was reached. The buyer offered a low
price. The seller offered a higher price. The final price – the
market price – was a middle, “compromise” price. The market price is
ultimately determined by supply and demand.
A Bible verse, Proverbs 20:14,
says, “Bad, bad, says the buyer, but when he goes away, then he
boasts.” What do you think this means?
When a buyer haggles,
he frequently lets on that he has got a bad price, but later he tells his
friends what a good price he negotiated!
What price did Estela ask for her
music box? Was she successful?
She asked $12, hoping to get
$10. She was not yet successful, as buyers seemed to think her price
was too high.
What was Estela’s plan for the next
time she went to the Swap Meet?
She was going to find other goods
to sell – perhaps some old games or stuffed animals.
In markets, when people make a
trade or exchange, who benefits?
Both buyer and seller
benefit. In the story, Papa got a hubcap, and the seller got
$6. The seller wanted a high price, and Papa surely would have liked
to pay less, but both ended up satisfied after the transaction. That
is, both ended up with something of more value that what they gave
up.
In markets, what must sellers do to
be successful?
They must produce and sell goods or services that
others want at a price high enough to cover their costs. If they
can’t cover all their costs at the market price, they must produce some
other kind of good or service.
Other Concepts: Market, Supply and
Demand, Trade and
Money |
