Exploring Supply and Demand Dynamics: Insights from a Classroom Game on the Market for Apples

Abstract

Louise Holm is a PhD in Economics and a university lecturer in Public Administration at the School of Public Administration, University of Gothenburg. The present working paper is a study focusing on higher education pedagogical development work. The empirical investigation is based on a classroom game (or experiment) conducted within the framework of an introductory course in economics on the Bachelor's program in Public Administration. This working paper introduces an innovative classroom activity, "The Apple Market," inspired by Holt's pit market (1996). The game effectively simulates market pricing by integrating the fundamental principles of supply and demand. Students are assigned dual roles as both sellers and buyers, and their common goal is to reach a mutually agreed-upon price that optimizes their consumer and producer surplus. "The Apple Market" not only brings economic theory to life but also enriches the learning experience in introductory courses in economics. The activity promotes a deeper understanding of how real economic forces shape prices and quantities allocated in the market. It also gives students the opportunity to witness the direct consequences of changes in supply and demand on market prices. Classroom activities like this also capture students' attention and increase their engagement in the course. My belief is that actively applying economic theory in a classroom environment promotes active learning and contributes to students' understanding of economics.