Lab Description
In this engaging lab, students will delve into the fundamental concepts of pricing and the pivotal role demand curves play in shaping effective pricing strategies.
Storyline: "You are very lucky to have inherited a small local department store, the Main Street General Store, from your Aunt Clara. The twist? You'll become the official owner of this community treasure only if you can turn an extra profit of $1000 from a Christmas Closeout sale of this year."
Students will find the best discount price of six flagship products of a department store using the given demand curves. They will be presented with two demand curves for every product, one for normal days and one for Christmas days. Students will find the discount price for Christmas that will yield maximum profit.
Students will also design discount posters for every product.
To wrap up the experience, students will reflect on their learnings by writing a letter to a friend, and sharing insights on how to set prices for products in the upcoming year's sale.
Who this course is for
Business students
Introduction (60 Minutes)
Sub Activities
- Review Questions
- Current Prices & Profits
Sub Activities
- Television Demand
- Profit Curve Observation
Sub Activities
- Understanding Normal & Christmas Demand
The objective of the activity is to teach students about the importance of adjusting prices during festivals like Christmas to maximize profit. They will learn that the demand and profit curves of a product during festival seasons, such as Christmas, differ from those on regular days. This activity helps them understand the necessity of price adjustments during such periods.
Sub Activities
- Air Fryer
- Toaster Oven
- Television
- Cell Phone
- Men's Winter Coat
- Women's Winter Coat
The learning objective is to let students practice percentage calculation.
Students will understand that the real sales are always different from the forecasted sales, it could be either more or less. But students are given an opportunity to adjust their prices to meet their target, which in real-world they will not.
Completion (7 Minutes)
- Price per Classroom$5 00$50.00
- Duration 1.5 Hours
- Activities 23
- Grade 8-12