Teach it. Check it. Revisit it.

Teacher guide

Audience: 12–18. Session: 30 minutes. Preparation: 5–10 minutes: paper and a calculator.

Prerequisites: Calculate percentages and describe supply and demand.

1. Spend 5 minutes asking learners to predict the result and explain their reasoning.
2. Use most of the session for the student activity. Ask learners to show calculations and name assumptions.
3. Reserve 5 minutes for the exit questions. Discuss why the answer follows, not just whether it matches.
4. Return to the follow-up next week without showing today’s answers first.

Student activity

An importer purchases a fictional item for $40. Model a 10% tariff on that customs value. Compare a seller absorbing the full $4 cost with passing all $4 to the buyer, keeping all other costs fixed.

Write your prediction, calculation, explanation and one assumption you would check in a real situation.

Exit quiz

1. How much is the modeled tariff?
2. Does a $4 tariff prove the retail price rises exactly $4?

Teacher answers and reasoning

1. $4 per item: $40 × 0.10. This is a hypothetical example, not a current tariff rule.
2. No. Pass-through depends on competition, demand, supplier pricing and margins. Full pass-through is one assumption.

For each response, check the method, the result and the explanation. A correct number with an incorrect explanation needs another example.

Next-week review

Next week, model half of the tariff being passed to the buyer. Identify which parties bear each part under that assumption.

Facts, assumptions and policy debate

Separate the tariff arithmetic from arguments about protecting jobs, raising revenue or retaliation. Identify evidence needed to evaluate each goal.

Ask: what is calculated, what is assumed, and what is a judgment about priorities?