Pearl Exchange- Demand and Supply Activity

The video tutorial introduces the Pearl Exchange, an activity designed to teach supply and demand concepts through interactive rounds. Students act as buyers and sellers, negotiating prices to understand consumer and producer surplus. The activity progresses through four rounds, each introducing different market scenarios, such as supply shocks and substitute effects, to illustrate equilibrium, shortages, and surpluses. The tutorial emphasizes the educational value of the activity, despite its simplifications compared to real-world markets, and encourages student engagement through dynamic classroom interactions.

What are the expected outcomes when the price of diamonds decreases in the activity?

How does the teacher track the prices during the negotiation rounds?

What insights do students gain about market equilibrium through this activity?