How We Organize Ourselves Provocation

The students in Grade 3 were recently introduced to the concepts of supply and demand through a fun and interesting marketplace simulation activity. 

This provocation activity had students buying, selling, and trading different coloured pencil crayons in order to become the first to finish colouring a series of four pictures.

Each student began the activity with $100 and the opportunity to purchase one pencil crayon at the opening auction. A range of strategies were employed at the opening auction with some students paying up to $95 for an in-demand pencil, and others holding on to their money until the end of the auction, where they were able to purchase a pencil for just $5.

Following the opening auction, students were given just one minute to use their purchased pencil. They were then given the chance to sell their coloured pencil to another student during a one minute trading period.

As students continued to alternate between one minute working and one minute trading periods, they found that some colours were easier to get than others.

All four pictures required the colour blue, but with just two blue pencils in circulation, many students had to pay a high price for the colour, and some were unable to buy it at all. On the other hand, only one picture required the colour orange, and there were several orange pencils in circulation, so many students struggled to sell the colour.

The activity continued until one student successfully completed all of their colouring.

Immediately after the simulation ended, students counted their money and discussed what they had learned from the activity. The top earners shared the strategies they used to make a profit, and the bankrupt and near bankrupt shared their shortcomings and mistakes.