There are some excellent children’s books available to teach economics through the real-life activity of a lemonade stand. Use these books to provide a context for learning the economic concepts of operating a lemonade stand.
Then, use the EconEdLink Lesson plan The Lemonade Squeeze. In this lesson, students read “The Lemon Story” to learn where lemons come from. They also put on a play and discuss economic concepts about having a lemonade stand. They also learn elementary economic concepts–
Choice, Consumers, Demand, Price, Producers, Scarcity, Supply
–and play The Lemonade Stand Game in the lesson Not Your Grandma’s Lemonade Stand.
After they use the lesson, they can read the online book Make and $ell Fresh Lemonade by Sunkist…who also provides lemonade stand tips!
How many of you have seen this Lemonade commercial from Verizon?
Think of the commercial in terms of the 6 Core Economic Principles.
- People choose. We always want more than we can get and productive resources are scarce. How does Suzy get human, natural, and capital resources for her lemonade empire?
- All choices involve costs. An opportunity cost is the next best alternative you give up when you make a choice. Suzy makes the choice to go big with her lemonade stand. When she chose to go corporate, she refused something else…
- People respond to incentives. Did incentives change in the commercial? How did people respond?
- Economic systems influence individual choices and incentives. When her dad gave her the phone, he introduced a good that helped change the economic system from a roadside lemonade stand. What were the changes in the system as compared to a regular lemonade stand?
- Voluntary trade creates wealth. What were the different types of specializations of goods and services that helped Suzy’s lemonade empire?
- The consequences of choices lie in the future. What were the consequences for Suzy’s dad? What were other unexpected consequences–good and bad?