Students learn law of supply by making a prototype product and negotiating a purchasing agreement with the teacher. In the production simulation, each student receives $20 to be used toward purchasing classroom supplies needed in production. Students will have to team up in order to have enough assets to make a product. Capital good costs will be spread out the more products which can be produced.
I first developed this project for use with an at-risk class. It was a great way to learn law of supply.