The Handshake Market: Supply & Demand Activity

The video tutorial introduces the handshake market activity, where students simulate a market to understand price determination, effects of government interventions like price ceilings and taxes, and the impact of substitute price changes. The activity involves multiple rounds with different market conditions, allowing students to experience and predict market dynamics. The tutorial concludes with a reflection on the educational value of the activity.

What is the primary objective of the handshake market activity?

• To explore the impact of taxes on goods.

• To understand how prices are determined in a market.

• To learn how to negotiate prices effectively.

• To practice selling products at a high price.

In the handshake market activity, what is the role of the blue cards?

• They represent the maximum price a seller can charge.

• They indicate the minimum price a buyer is willing to pay.

• They show the price a buyer is willing to pay.

• They are used to track the number of transactions.

What must participants do after completing a transaction in the handshake market activity?

• Keep the same card for the next round.

• Return the card and pick a new one randomly.

• Leave the market immediately.

• Negotiate a new price with the same partner.

What is the purpose of the 'leave the market' option in the activity?

• To encourage participants to negotiate better.

• To prevent participants from making a loss.

• To allow participants to take a break.

• To increase the number of transactions.

What happens when a price ceiling is introduced in the market?

• Prices decrease and quantity decreases.

• Prices increase and quantity increases.

• Prices remain the same and quantity increases.

• Prices increase and quantity decreases.

What is the significance of reaching equilibrium in the handshake market?

• It suggests that sellers are not making profits.

• It means that buyers are leaving the market.

• It shows that supply equals demand.

• It indicates that prices are too high.

How does the introduction of a substitute affect the handshake market?

• It decreases the demand for handshakes.

• It increases the demand for handshakes.

• It increases the price of handshakes.

• It has no effect on the demand for handshakes.

What is the effect of a tax on the handshake market?

• It increases the supply of handshakes.

• It decreases the supply of handshakes.

• It has no effect on the supply of handshakes.

• It increases the demand for handshakes.

Why is it important to understand the impact of substitutes in a market?

• To increase the price of the original product.

• To ensure that all products are sold at a loss.

• To predict changes in demand and adjust strategies.

• To eliminate competition from the market.

What resources are needed to conduct the handshake market activity?

• A detailed market analysis report.

• Computers and internet access.

• Different colored decks of cards.

• A large room and a projector.