The Invisible Hand
Unit Description:
In The Invisible Hand unit, students explore how market-set prices serve as the mechanism to distribute goods and services. In attempting to allocate gasoline in a price-controlled market, students come to understand how producers and consumers alter their behavior when governments set prices below the equilibrium price. By having to explain how free markets operate, students find answers to the questions, Who makes economic decisions and by what process? and What is produced and in what quantities?
Time required:
4-5 days
