This exercise will explore the derivation of market demand using the class as the market of buyers for Coca-Cola. Using the actual demand for two cans of Coke, you will be able to create a demand schedule and a demand curve. Students should be able to see the relationship between demand and supply and also discuss the concepts of shortages and surpluses.

Bring two cans of Coke to class. Ask how many would like a Coke. Then ask how many have the money to buy a Coke. Tell the class that you will be selling the two cans of Coke to the two students who are willing to pay the most for them. Be sure students realize real money will change hands. Then begin the process:

How many will buy the Coke at a price of ten cents?

How many will buy the Coke at a price of 50 cents?

Etc.

Stop the bidding when there are only two students left willing and able to pay the price. Then having added up those willing and able to buy the Coke at each price, plot the demand curve.