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3314-02-04-Student Guide

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, create visual representations of this data, and analyze the implications for membership pricing and economic relationships. The assignment includes specific instructions for using word processing software to complete the graphs and flow chart.

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csmith15121
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62 views4 pages

3314-02-04-Student Guide

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, create visual representations of this data, and analyze the implications for membership pricing and economic relationships. The assignment includes specific instructions for using word processing software to complete the graphs and flow chart.

Uploaded by

csmith15121
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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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.

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 Applications Memberships Available
$0 600 0

$15 450 100

$30 300 200

$45 150 300

Copyright © Edgenuity Inc.


Student Guide (continued)

$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. (10 points)

2. Is the demand curve shallow or steep? What does this mean about the elasticity of the demand
for memberships? (5 points)

3. Is the supply curve shallow or steep? What does this mean about the elasticity of supply for
memberships? (5 points)

Copyright © Edgenuity Inc.


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 affect demand for their
product? (5 points)

Copyright © Edgenuity Inc.


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)

Copyright © Edgenuity Inc.

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