Slides 4–36

3. Progress through Slides 4–5. Use Slide 5 to introduce the labor market model and emphasize its similarities to the product market. Acknowledge that, like the product market model, the labor market model is a helpful but imperfect representation of the real world.
4. Advance to Slide 6. Identify the labor market model axes and explain what they represent. Students fill in the blanks on the labor market model and add notes to Student Handout throughout the lesson.
5. Proceed to Slide 7. Ask students to use what they know about product markets to predict what the supply curve represents in the labor market. Students share predictions with a classmate. Click to reveal the supply curve definition. Alert students to the stumbling block (yellow warning graphic): students must be able to identify who the suppliers and demanders are in the labor market before they can transfer product market knowledge to this model.
6. Using Slides 8–9, repeat Step 5 for the demand curve and equilibrium point.
7. Display Slide 10. Tell students to discuss the questions with a peer, then debrief as a class. Pro Tip: Before displaying Slide 10, instruct students to flip Student Handout over so they cannot see the labeled model.
8. Proceed to Slide 11. Explain the assumptions of the labor market model. Students add notes to Student Handout. Click to display the question and allow students to discuss their responses with a partner before debriefing.
9. Advance to Slide 12. Tell students that similar to the product market, the supply and demand curves in the labor market can shift.
10. Display Slide 13. Explain what a shift in the labor supply curve means. Alert students to the stumbling block: a change in wages does not result in a change in the supply of labor.
11. Proceed to Slide 14. Identify possible shifters of the labor supply curve. Note: Students should recognize that any development making workers more or less willing to sell hours of labor at every wage rate will shift the supply curve. They are not expected to memorize specific shifters.
12. Using Slides 15–16, repeat Steps 10–11 for shifts in the labor demand curve.
13. Progress through Slides 17–18. Remind students of the role competition plays in achieving equilibrium price in a product market.
14. Advance to Slide 19. Explain how competition in the labor market similarly puts pressure on wages after a shift in the labor supply or demand curve.
15. Proceed to Slide 20. Distribute 1 toothpick to each student. Tell students they will be presented with scenarios and will use the toothpick to visualize a shift in either the supply or demand curve of labor (using the model on Student Handout) and the resulting change in equilibrium wage rate.
16. Progress to Slide 21. Students read the scenario and manipulate their toothpick to indicate the correct shift. Working in pairs, students discuss the question on the slide. Click to reveal the correct direction of the shift and the resulting change in equilibrium wage rate.
17. Using Slides 22–25, repeat Step 15 for the remaining scenarios. (See Slides 41–44 for additional practice scenarios.)
18. Display Slide 26. Tell students to consider the prompt and add notes and drawings to their handout. Collect toothpicks.
19. Advance to Slide 27. Remind students that the new equilibrium is not achieved instantaneously — it is the result of workers and firms eventually changing their behavior in response to market signals.
20. Proceed to Slide 28 to prompt students to determine if there was a shortage or surplus at the original equilibrium wage rate after the shift. Reveal the solution on Slide 29 and explain key points on the graph.
21. Progress through Slides 30–31. Clarify the outcomes of a labor surplus for firms and workers.
22. Using Slides 32–33, repeat Steps 18–19 for labor shortages.
23. Display Slide 34. Tell students to consider the prompt and add notes and drawings to their handout.
24. Proceed to Slide 35. Direct students to retrieve their Labor Market Trends card from under their seat. Working with the same partner from Step 1, students use their card to answer the given prompt. Circulate to check for accuracy using KEY Labor Market Trends. Collect Labor Market Trends.
25. Progress through Slides 35–36. Tell students they will work as a team of 2–3 to complete a challenge. Organize students into teams and distribute 1 copy of Challenge Questions to each student. Pro Tip: Place Challenge Questions in a folder or envelope so all teams start at the same time.
26. Allow 10 minutes for teams to complete Challenge Questions and Economic Riddle. Note: When a team announces completion, use KEY Challenge and Economic Riddle to verify. If any responses are incorrect, send the group back — all teams continue until a winner is determined.
27. Celebrate the winning team and distribute the optional prize. Review correct responses as a class using KEY Challenge and Economic Riddle.