Lemonade Stand Economics Activity- Supply & Demand for 1st–3rd Grade

Introduce young learners to foundational economic concepts with this engaging, hands-on Lemonade Stand Economics activity! Designed for 1st–3rd grade, this interactive lesson uses a familiar and kid-friendly scenario—running a lemonade stand—to help students understand supply, demand, pricing, competition, costs, and profit in a developmentally appropriate way.

Students follow the story of Jack and Nora, two kids who open competing lemonade stands. Through guided discussion and manipulatives, students explore how price affects demand, why people make different choices, what happens during a price war, and how costs and profit work in real life. The activity includes cut-and-paste pieces, pricing signs, and character visuals that make abstract economic ideas concrete and memorable.

This resource works well as a read-aloud lesson, small-group activity, social studies center, or family-style homeschool lesson.

🧃 What’s Included

✔ Lemonade stand visuals (2 stands)
✔ Price signs ($1, $2, $3)
✔ Student character cut-outs
✔ Scripted, student-friendly lesson text
✔ 4 mini-lessons covering:

• Price & demand
  
• Product differentiation
  
• Supply & price wars
  
• Costs & profit
  

✔ Low-prep, print-and-use format

🎯 Standards Alignment (Grades 1–3)

National Social Studies Standards (C3 Framework)

This activity supports early elementary indicators from the C3 Framework, including:

• D2.Eco.1.K–2 / 3–5 – Describe how people use money to buy goods and services
  
• D2.Eco.2.K–2 / 3–5 – Identify choices people make about how to use resources
  
• D2.Eco.4.K–2 / 3–5 – Explain how people earn income and why people save and spend money
  
• D2.Civ.6.K–2 – Explain how rules and choices affect outcomes
  

Students practice making economic choices and explaining why people choose one option over another.

State Social Studies Standards (Commonly Used for Grades 1–3)

This lesson aligns with core economic concepts found in most state standards, including:

• Understanding basic economic choices
  
• Recognizing that price affects buying decisions
  
• Identifying goods, services, and money
  
• Understanding costs and earning money
  
• Exploring simple business and competition concepts
  

(These concepts are commonly addressed in Grades 1–3 social studies standards across states such as California, Texas, Florida, and New York.)

👩🏫 Grade Levels

• Best for Grades 1–3
  
• Ideal for homeschool, classrooms, and co-ops
  
• Easily adaptable for mixed-age learning

*This is an individual worksheet from Stories in History's 1st and 2nd grade full-year social studies curriculum called My World, My Story.