Grade 3
Social Studies
Unit: 11
Lesson: 02
Suggested Duration: 4 days
Grade 03 Social Studies Unit 11 Exemplar Lesson 02: What Affects Prices of Products?
This lesson is one approach to teaching the State Standards associated with this unit. Districts are encouraged to customize this lesson by
supplementing with district-approved resources, materials, and activities to best meet the needs of learners. The duration for this lesson is only a
recommendation, and districts may modify the time frame to meet students’ needs. To better understand how your district may be implementing
CSCOPE lessons, please contact your child’s teacher. (For your convenience, please find linked the TEA Commissioner’s List of State Board of
Education Approved Instructional Resources and Midcycle State Adopted Instructional Materials.)
Lesson Synopsis
Students continue to learn about business and economics in the free enterprise system focusing on individuals, such as Milton Hershey, Wallace
Amos, and Sam Walton.
TEKS
The Texas Essential Knowledge and Skills (TEKS) listed below are the standards adopted by the State Board of Education, which are required by
Texas law. Any standard that has a strike-through (e.g. sample phrase) indicates that portion of the standard is taught in a previous or subsequent
unit. The TEKS are available on the Texas Education Agency website at http://www.tea.state.tx.us/index2.aspx?id=6148.
3.8
Economics. The student understands how businesses operate in the U.S. free enterprise system. The student is
expected to:
3.8A Identify examples of how a simple business operates.
3.8B Explain how supply and demand affect the price of a good or service.
3.8C Explain how the cost of production and selling price affect profits.
3.8D Explain how government regulations and taxes impact consumer costs.
3.8E Identify individuals, past and present, including Henry Ford and other entrepreneurs in the community such as
Mary Kay Ash, Wallace Amos, Milton Hershey, and Sam Walton, who have started new businesses.
Social Studies Skills TEKS
3.17
Social studies skills. The student applies critical-thinking skills to organize and use information acquired from a
variety of valid sources, including electronic technology. The student is expected to:
3.17A Research information, including historical and current events, and geographic data, about the community and
world, using a variety of valid print, oral, visual, and Internet resources.
3.18
Social studies skills. The student communicates in written, oral, and visual forms. The student is expected to:
3.18A Express ideas orally based on knowledge and experiences.
3.18B Use technology to create written and visual material such as stories, poems, pictures, maps, and graphic
organizers to express ideas.
GETTING READY FOR INSTRUCTION
Performance Indicators
Grade 03 Social Studies Unit 11 PI 02
Interview a local business owner to find out about how basic economic concepts affect his/her business. Include:
1. the concept of free market
2. how supply and demand affect prices
3. how the cost of production affects prices
4. how government regulations and taxes affect price
Present your findings in a written or visual report with an oral explanation using academic vocabulary.
Standard(s): 3.8A , 3.8B , 3.8C , 3.8D , 3.8E , 3.17A , 3.18A , 3.18B
ELPS ELPS.c.3G , ELPS.c.3H
Key Understandings
Prices in a free market economy are affected by supply and demand, scarcity, and cost of production, as well as by government regulations
and taxes.
— How does supply and demand affect the price of a good or service?
Last Updated 05/13/13
Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD
page 1 of 8 Grade 3
Social Studies
Unit: 11
Lesson: 02
Suggested Duration: 4 days
— How does the cost of production and selling price affect profits?
— How does government regulations and taxes impact consumer costs?
— What skills are needed to operate a business successfully?
Vocabulary of Instruction
free market
supply and demand
price
cost of production
government regulation and taxes
profit
Materials
Refer to Notes for Teacher section for materials.
Attachments
All attachments associated with this lesson are referenced in the body of the lesson. Due to considerations for grading or student assessment,
attachments that are connected with Performance Indicators or serve as answer keys are available in the district site and are not accessible on the
public website.
Handout: Hershey’s Chocolate (1 copy for half the students in class)
Handout: Famous Amos Chocolate Chip Cookies (1 copy for the other half of the students)
Handout: Questions for a Business Owner (1 per student)
Resources
None identified
Advance Preparation
1.
2.
3.
4.
5.
6.
Become familiar with content and procedures for the lesson.
Refer to the Instructional Focus Document for specific content to include in the lesson.
Select appropriate sections of the textbook and other classroom materials that support the learning for this lesson.
Preview materials and websites according to district guidelines.
Prepare materials and handouts as necessary.
Invite a local business leader to serves as the subject of an interview.
Background Information
In previous lessons students learned about basic economic concepts and the free enterprise system. In the previous unit students gained an understanding of economic
concepts at work within the free market system. In this lesson, students learn about impacts of entrepreneurship on business development. Three business leaders are
highlighted in this lesson.
Born in 1857 in Pennsylvania, Milton Hershey built a candy empire through sweat and innovation. At the age of 14, Hershey began apprenticing with a candy maker and four
years later opened his first candy store in Philadelphia. It was unsuccessful. Undeterred, Hershey kept at candy-making. New business attempts in Chicago and New York
City also failed. Returning to Pennsylvania, Hershey used his knowledge of caramels to create finally a thriving candy business that shipped his confections across the
country. After seeing the art of chocolate­making at the 1893 World’ Fair, he sold his caramel company to create a modern chocolate factory in his hometown. By 1907, his
invention of the Hershey’s Kiss led to rapid expansion of Hershey’s chocolate business. With success came philanthropy. Hershey funded a school and established a
charitable trust. Hershey kept his workers on the payroll through the Great Depression that helped the community thrive.
Wally Amos started small and made it big. After service in the Air Force, he began in the mailroom of the famous New York City William Morris Talent agent. Working his way
up, he became the first black talent agent with the company and signed acts such as Simon & Garfunkel as well as represented Diana Ross. He would use cookies based
on a recipe from his aunt as presents for clients. A friend suggested he open a cookie store. He opened his first store in L.A. with the backing of Marvin Gaye and Helen
Reddy. His Famous Amos cookies gained wide popularity as well as Amos himself. He sold his company and started another company that now sells Uncle Wally’s Muffins.
Along with baking and business skills, he serves as a strong advocate of literacy. He starred in the television show Learn to Read to expand adult literacy. He continues his
work and philanthropy today.
Sam Walton in his early twenties began his training in business and retail working at J.C. Penny’s in Des Moines. With a $25,000 loan, he bought a store in the Ben Franklin
franchise in Arkansas. After acquiring over a dozen stores, he grew frustrated with the corporate office and decided to create his own store Wal-Mart that opened in Rogers,
Arkansas. Walton’s vision was to create a discount retail chain in small towns where there was little competition. Despite recessions, his company thrived. At his death in
1991, he was the country’s richest man.
Admired business leaders often share characteristics that can translate into success. Along with an innate sense of business organization, successful entrepreneurs often
have a unique idea that leads to their success. Despite possibly having a powerful new idea for the marketplace, they may still fail. Yet, great business leaders have often
had a series of failure as well as successes that help to educate them. Successful business leaders often need a strong understanding of the interactions of systems as
well as insight on the needs of people. Within the U.S. free enterprise system, entrepreneurs have a variety of opportunities to capitalize on their talents and ideas.
Last Updated 05/13/13
Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD
page 2 of 8 Grade 3
Social Studies
Unit: 11
Lesson: 02
Suggested Duration: 4 days
GETTING READY FOR INSTRUCTION
Teachers are encouraged to supplement and substitute resources, materials, and activities to meet the needs of learners. These lessons are one
approach to teaching the TEKS/Specificity as well as addressing the Performance Indicators associated with each unit. District personnel may create
original lessons using the Content Creator in the Tools Tab. All originally authored lessons can be saved in the “My CSCOPE” Tab within the “My
Content” area.
INSTRUCTIONAL PROCEDURES
Instructional Procedures
ENGAGE - Discussion
Notes for Teacher
NOTE: 1 Day = 50 minutes
Suggested Day 1 – 5 minutes 1. Ask students:
TEKS: 3.8A, 3.8B
Purpose:
Students are introduced to methods of marketing a product.
Have you ever eaten chocolate chip cookies or Hershey kisses?
What makes a chocolate chip cookie or a piece of taste good?
If a product tastes good, it will probably ________________.
2. Explain that both products were produced to taste good so they would sell well to
buyers. Taste is an important part of marketing.
EXPLORE - Read, Research and Record
Suggested Day 1 (continued) – 25 minutes 1. Divide the class into groups of 2-3 students.
Attachments:
2. Assign half of the groups to read about Milton Hershey and the other half of the
groups to read about Famous Amos.
3. Distribute the Handout: Hershey’s Chocolate to groups reading and researching about Milton
Hershey. Distribute the Handout: Famous Amos Chocolate Chip Cookies to groups reading and
researching about Famous Amos.
4. Students read, research and record their findings. Groups may record their
information on a graphic organizer.
Handout: Hershey’s Chocolate (1 copy for half
the students in class)
Handout: Famous Amos Chocolate Chip
Cookies (1 copy for the other half of the students)
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A
Instructional Note:
Provide a variety of resources to help students with
the research on Hershey and Amos (books,
Internet, print, diaries, newspapers,
advertisements, photographs, and other
resources.)
Purpose:
Students review and discuss the four economic questions.
EXPLAIN - Interview
Suggested Day 1 (continued) – 20 minutes 1. Distribute the Handout: Questions for a Business Owner to each group.
Attachments:
2. Discuss the four economic questions listed in the Handout: Questions for a
Business Owner and how they apply to each person researched.
3. Students complete the Handout: Questions for a Business Owner.
Handout: Questions for a Business Owner (1
per student)
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
4. After the questions are answered by the groups, facilitate a discussion based on
student responses.
EXPLORE - Sam Walton
Suggested Day 2 – 30 minutes 1. Using a variety of resources, students research and create a graphic organizer or
written report on Sam Walton.
Attachments
2. In addition, student research should focus on being able to answer the four
questions from the Handout: Questions for A Business Owner
Handout: Questions for A Business Owner
(made into an anchor chart or made visible to
students as they research Sam Walton)
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
Instructional Note
Provide a variety of resources to help students with
the research on Sam Walton (books, Internet, print,
diaries, newspapers, photographs, advertisements
and other resources.
EXPLAIN - Small Group Discussion
Last Updated 05/13/13
Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD
Suggested Day 2 (continued) – 20 minutes page 3 of 8 Grade 3
Social Studies
Unit: 11
Lesson: 02
Suggested Duration: 4 days
1. Students, in small groups, compare their findings.
2. Groups create a graphic organizer (Note: The graphic organizer may be a stick
figure or a bubble map, etc.) that describes important attributes of Sam Walton.
3. Facilitate a class discussion to prepare students for the business person who will be
interviewed by the class on the following day. Decide on a list of question including
the four from the Handout: Questions for A Business Owner.
EXPLORE- Practice Interview Process
Attachments
Handout: Questions for A Business Owner
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
Instructional Note:
Teacher informs and prepares students for the
interviewing process that will take place on the
following day.
Suggested Day 3 – 15 minutes 1. Students prepare for the interview by developing questions (including questions from Attachments
the Handout: Questions for a Business Owner) and practicing the interview
Handout: Questions for A Business Owner
process.
2. Students practice the interviewing process with a partner.
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
Instructional Notes:
The lesson may be modified to allow students to interview a
business leader they find themselves. They could return with their
interview for a presentation to the class.
EXPLAIN/ELABORATE - Guiding Questions
Suggested Day 3 (continued) – 20 minutes 1. Facilitate student thinking by using guiding questions such as:
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
How does supply and demand affect the price of a good or service?
How does the cost of production and selling price affect profits?
How does government regulations and taxes impact consumer costs?
What skills are needed to operate a business successfully?
ELABORATE - Preparing for Interview
Suggested Day 3 (continued) – 15 minutes 1. Students make final preparations for the interview of a local business person.
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
EVALUATE – Performance Indicator
Suggested Day 4 – 50 minutes Grade 03 Social Studies Unit 11 PI 02
TEKS: 3.8A, 3.8B, 3.8C, 3,8D, 3.8E; 3.17A; 3.18A, 3.18B
Interview a local business owner to find out about how basic economic concepts affect his/her
business. Include:
Instructional Note:
1. the concept of free market
2. how supply and demand affect prices
3. how the cost of production affects prices
Teacher will make contact with a local business
person for the interview and inform the business
person of the content of the interview including the
questions from the Handout: Questions for a
Business Owner.
4. how government regulations and taxes affect price
Present your findings in a written or visual report with an oral explanation using academic
vocabulary.
Standard(s): 3.8A , 3.8B , 3.8C , 3.8D , 3.8E , 3.17A , 3.18A , 3.18B
ELPS ELPS.c.3G , ELPS.c.3H
Last Updated 05/13/13
Print Date 06/20/2013 Printed By Karen Johnson, MIDLAND ISD
page 4 of 8 Grade 3
Social Studies
Unit: 11 Lesson: 02
Hershey Chocolate
Milton S. Hershey grew up in a small community near Lancaster,
Pennsylvania where he learned the value of hard work. As a young man,
Hershey worked as an apprentice in a candy company. Hershey had the
idea of starting his own candy business. He set it up in the city of
Philadelphia but it was a failure.
Hershey came home and asked his aunt for a loan to set up a small candy
store in Lancaster. Hershey tried hard candy at first, like peppermints and
caramels. While he was selling the hard candy, Hershey started working on
a recipe for chocolate. He worked and worked to get the chocolate to taste
just right but something was missing. Curious as to what else he could try
to make his candy taste better, Hershey visited the World’s Fair, which was
held in the big city of Chicago. There he saw how the manufacturers of milk
chocolate from Germany used an assembly line process. He liked that! But
Hershey did not like the taste of their milk chocolate. They used a sort of
dried milk in the recipe that he could taste, and Hershey wanted his candy
to be made from perfectly fresh milk.
Now Hershey decided to work on the idea of a conveyor belt process.
Hershey also tried having his own cows and feeding them a special grass
and taking really good care of the cows. Sure enough, Hershey finally got
his recipe just right and people loved the Hershey’s chocolate. Hershey
also wanted to make sure people could afford to buy the candy, if they
wanted, so he always tried to price the candy a little lower than other
companies.
Mr. Hershey became so successful with his chocolate factory that he was
able to build a whole town around the factory. If you worked for Mr.
Hershey, he paid you well, provided a house, and a very fun, and clean,
community for you to live in. The factory grew bigger and bigger as the
candy became more and more popular.
Mr. Hershey was married but had no children. Since he had lots of money,
Hershey liked to do things for other people. He built a large, very nice,
orphanage into his town. The children who lived there had nice clothes,
©2012, TESCCC
05/08/13
page 1 of 2
Grade 3
Social Studies
Unit: 11 Lesson: 02
plenty of good food, and a very good school. Mr. Hershey did nice things
for thousands of people in his lifetime. He made many donations to
charities with his money.
The town of Hershey, Pennsylvania still exists today. If you visit there, you
will smell the warm delicious chocolate. The people who work for the
Hershey Company are no longer required to live there, and in fact the
business has been bought by another candy company. But, you can still
get the same delicious Hershey’s chocolate.
©2012, TESCCC
05/08/13
page 2 of 2
Grade 3
Social Studies
Unit: 11 Lesson: 02
Famous Amos Chocolate Chip Cookies
Famous Amos has a real name. It is Wallace “Wally” Amos. Mr. Amos was
an Air Force veteran who worked for a company where he needed to meet
important people. To entice important people into meeting him, Amos
would send them home-baked chocolate chip cookies.
Eventually, the cookies were such a hit that Amos’ friends talked him into
opening a little cookie shop in Los Angeles, California. In 1975, Amos did
just that, naming the store Famous Amos. In the first year of business, the
company sold $300,000.00 worth of cookies. In his second year, Amos sold
over a million dollars’ worth of cookies.
The store was so popular that Famous Amos became a brand of cookies
that branched out into other markets across America. Mr. Amos even
created a famous look in the packaging which included a picture of him on
the back of the sack. The delicious Famous Amos cookies could now be
bought by everyone in supermarkets all over America. And, now, other big
companies began to copy what Mr. Amos had done in marketing the
cookies.
Mr. Amos finally sold his cookie brand to another company. It has belonged
to four different companies, but now it belongs to the company Kellogg.
If you would still like a cookie baked by Wally Amos, you can buy his brand
called Chips and Cookies. The recipe is a little different from his first
Famous Amos cookies, but people say they are great.
©2012, TESCCC
05/08/13
page 1 of 1
Grade 3
Social Studies
Unit: 11 Lesson: 02
Questions for a Business Owner
Student Name: ____________________________
Person Studied: ______________________________________
Please explain as you think about the person you studied and researched would answer
to explain these concepts:
1. How would you explain the concept of free market?
2. How do supply and demand affect your prices?
3. How does the cost of production affect prices?
4. How do government regulations and taxes affect price?
©2012, TESCCC
11/14/12
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