EXAMPLE 1: Breakfast cereal vs. Sunscreen

Managerial Economics

PGDM : 2015 17 Term 1 (June September, 2015)(Lecture 05)

PQMarket EquilibriumDSEquilibrium: P has reached the level where quantity supplied equals quantity demanded 0222DS

PQEquilibrium Price: The price that equates quantity supplied with quantity demanded (Max WTP = Min WTA)PQDQS$02401215218103151541220592566300333DS

PQEquilibrium quantity: The quantity supplied and quantity demanded at the equilibrium price PQDQS$02401215218103151541220592566300444

PQDSSurplus (excess supply):When quantity supplied is greater than quantity demandedSurplusExample: If P = $5, then QD = 9 lattesand QS = 25 lattesresulting in a surplus of 16 lattes0555

PQDSFacing a surplus, sellers try to increase sales by cutting price.This causes QD to riseSurpluswhich reduces the surplus. and QS to fall 06Surplus (excess supply):When quantity supplied is greater than quantity demanded66

PQDSFacing a surplus, sellers try to increase sales by cutting price.This causes QD to rise and QS to fall. SurplusPrices continue to fall until market reaches equilibrium. 07Surplus (excess supply):When quantity supplied is greater than quantity demanded77

PQDSShortage (excess demand): when quantity demanded is greater than quantity supplied Example: If P = $1, then QD = 21 lattesand QS = 5 lattesresulting in a shortage of 16 lattesShortage0888

PQDSFacing a shortage, sellers raise the price,causing QD to fallwhich reduces the shortage. and QS to rise,Shortage09Shortage (excess demand): when quantity demanded is greater than quantity supplied 99

PQDSFacing a shortage, sellers raise the price,causing QD to falland QS to rise.ShortagePrices continue to rise until market reaches equilibrium. 010Shortage (excess demand): when quantity demanded is greater than quantity supplied 101011EXAMPLESDemand CurveA.The price of iPods fallsB.The price of music downloads fallsC.The price of CDs falls12Draw a demand curve for music downloads. What happens to it in each of the following scenarios? Why?

12A. Price of iPods falls13Q2Price of music down-loadsQuantity of music downloadsD1D2P1Q1Music downloads and iPods are complements. A fall in price of iPods shifts the demand curve for music downloads to the right.13B. Price of music downloads falls14The D curve does not shift. Move down along curve to a point with lower P, higher Q. Price of music down-loadsQuantity of music downloadsD1P1Q1Q2P214C. Price of CDs falls15P1Q1CDs and music downloads are substitutes. A fall in price of CDs shifts demand for music downloads to the left. Price of music down-loadsQuantity of music downloadsD1D2Q215Supply Curve16Draw a supply curve for tax return preparation software. What happens to it in each of the following scenarios? A.Retailers cut the price of the software. B.A technological advance allows the software to be produced at lower cost.C.Professional tax return preparers raise the price of the services they provide.

16A. Fall in price of tax return software17S curve does not shift. Move down along the curve to a lower P and lower Q.Price of tax return softwareQuantity of tax return softwareS1P1Q1Q2P217B. Fall in cost of producing the software18S curve shifts to the right: at each price, Q increases.Price of tax return softwareQuantity of tax return softwareS1P1Q1S2Q218C. Professional preparers raise their price19This shifts the demand curve for tax preparation software, not the supply curve. Price of tax return softwareQuantity of tax return softwareS119Three Steps to Analyze Changes in EquilibriumTo determine the effects of any event, 1.Decide whether event shifts S curve, D curve, or both. 2.Decide in which direction curve shifts. 3.Use supply-demand diagram to see how the shift changes eqm P and Q. 2020Example 1: The Market for Diesel CarsPQD1S1P1Q1price of diesel carsquantity of diesel cars2121STEP 1: D curve shifts because price of gas affects demand for hybrids. S curve does not shift, because price of gas does not affect cost of producing hybrids. STEP 2: D shifts rightbecause high gas price makes hybrids more attractive relative to other cars.Example 1:A Shift in DemandEvent to be analyzed: Increase in price of Petrol.PQD1S1P1Q1D2P2Q2STEP 3: The shift causes an increase in price and quantity of diesel cars.2222PQD1S1P1Q1D2P2Q2Notice: When P rises, producers supply a larger quantity of diesel cars, even though the S curve has not shifted. Always be careful to distinguish b/w a shift in a curve and a movement along the curve. Example 1:A Shift in Demand2323STEP 1: S curve shifts because event affects cost of production. D curve does not shift, because production technology is not one of the factors that affect demand.STEP 2: S shifts rightbecause event reduces cost, makes production more profitable at any given price. Example 2:A Shift in Supply

PQD1S1P1Q1S2P2Q2Event: New technology reduces cost of producing diesel cars.STEP 3: The shift causes price to fall and quantity to rise.242425Example3: A Shift in Both Supply and DemandPQD1S1P1Q1S2D2P2Q2Events: price of fuel rises AND new technology reduces production costsSTEP 1: Both curves shift.STEP 2: Both shift to the right. STEP 3: Q rises, but effect on P is ambiguous: If demand increases more than supply, P rises.2525STEP 3, cont.PQD1S1P1Q1S2D2P2Q2EVENTS: price of fuel rises AND new technology reduces production costsBut if supply increases more than demand, P falls. Example3: A Shift in Both Supply and Demand2626Shifts in Supply and DemandUse the three-step method to analyze the effects of each event on the equilibrium price and quantity of music downloads.

Event A: A fall in the price of CDsEvent B: Sellers of music downloads negotiate a reduction in the royalties they must pay for each song they sell. Event C: Events A and B both occur. 27A. Fall in price of CDs2.D shifts leftPQD1S1P1Q1D2The market for music downloadsP2Q21.D curve shifts3.P and Q both fall.STEPS28B. Fall in cost of royaltiesPQD1S1P1Q1S2The market for music downloadsQ2P21.S curve shifts2.S shifts right3.P falls, Q rises.STEPS(Royalties are part of sellers costs)29The royalties that sellers must pay the artists are part of sellers costs of production. Typically, this royalty is a fixed amount each time one of the artists songs is downloaded. Event B, therefore, describes a reduction in sellers costs of production.

Sellers of music downloads negotiate a reduction in the royalties they must pay for each song they sell. This event causes a fall in costs of production for sellers of music downloads. Hence, the S curve shifts to the right.

C. Fall in price of CDs and fall in cost of royaltiesResultsP unambiguously falls.Effect on Q is ambiguous: The fall in demand reduces Q; The increase in supply increases Q. 30Verify the result by a graphical analysis as discussed in the class.A Funny ExerciseExplain the story told by this image with the help of Demand Supply Tools..031

3131Market Equilibrium: Algebraic ApproachQuantity Demanded is function of price .(1)An inverse demand function or price function is .(1.1)

Quantity Supplied is function of ....(2) An inverse supply function is ..(2.1)

032

3232Market Equilibrium: Algebraic ApproachWhen the market is in equilibrium, , where, is the Equilibrium Price where, is the Equilibrium Quantity

Since, Price cannot be negative Alternatively, you can obtain the equilibrium price and quantity just by equating equations (1) and (2)

033

3333ExampleDemand is given by QD = 620 10P and supply is given by QS = 100 + 3P. What is the price and quantity when the market is in equilibrium?

Answer: In equilibrium, QD = QS, 620 10P = 100 + 3PSo, the equilibrium Price is 40And the equilibrium quantity is 220.

0343434A note on Equilibrium PriceThe objective of Demand supply analysis is to find a price at which the market is clear. We know it is the equilibrium price.Other than Market clearing explanation of equilibrium price what else can you say about this price?In the simplest manner, equilibrium price can be defined as the market value of a product or service and at this value the willingness to accept (WTA) of the sellers matches with willingness to pay (WTP) of the buyers.Now the question is why does equilibrium price differ across different markets?It was thought by the economists, that intrinsic use value of a commodity is the reason for this difference .However, the concepts of production cost and scarcity value better explain this difference. It should be noted that scarcity is also responsible for increasing the production cost. The following examples help you to understand this concept:

352A note on Equilibrium Price (contd.)36Diamond and Water ParadoxReal Diamond and Cubic Zicronium Diamond (artificial)Hand Written Bible and Printed BibleWhale Oil Lubricant and Lubricant made from Jojoba Beans2Suggested ReadingsShuttlecock Production in Uluberia, West Bengal (http://articles.economictimes.indiatimes.com/2012-12-28/news/36036532_1_shuttlecocks-duck-feathers-badminton-players)

Discovery of Jojoba Beans caused a collapse of Whale Oil Lubricant Price (Article sent through email)(http://en.wikipedia.org/wiki/Jojoba)(http://en.wikipedia.org/wiki/Jojoba)

Depreciation of Rupee and Impact on Product Market (The article sent through e-mail)

Atkins Diet and Demand for Egg (The article sent through e-mail)

37ElasticityBasic idea: Elasticity measures how much one variable responds to changes in another variable. One type of elasticity measures how much demand for your websites will fall if you raise your price. Definition: Elasticity is a numerical measure of the responsiveness of Qd or Qs to one of its determinants. 0383838Price elasticity of demand measures how much Qd responds to a change in P.Price elasticity of demand=Percentage change in QdPercentage change in PLoosely speaking, it measures the price-sensitivity of buyers demand. 039Price Elasticity of Demand3939Price elasticity of demand equals 0PQDQ2P2P1Q1P rises by 10%Q falls by 15%15%10%= 1.5Price elasticity of demand=Percentage change in QdPercentage change in PExample:40Price Elasticity of Demand4040Price Elasticity of DemandAlong a D curve, P and Q move in opposite directions, which would make price elasticity negative. We will drop the minus sign and report all price elasticities as positive numbers. 0PQDQ2P2P1Q1Price elasticity of demand=Percentage change in QdPercentage change in P414141Calculating Percentage Changes0PQD$2508B$20012ADemand for your websitesStandard method of computing the percentage (%) change:end value start valuestart valuex 100%Going from A to B, the % change in P equals($250$200)/$200 = 25%4242420PQD$2508B$20012ADemand for your websitesProblem: The standard method gives different answers depending on where you start. From A to B, P rises 25%, Q falls 33%,elasticity = 33/25 = 1.33From B to A, P falls 20%, Q rises 50%, elasticity = 50/20 = 2.50 43Calculating Percentage Changes4343So, we instead use the midpoint method: 0end value start valuemidpointx 100%The midpoint is the number halfway between the start & end values, the average of those values. It doesnt matter which value you use as the start and which as the end you get the same answer either way!44Calculating Percentage Changes4444Using the midpoint method, the % change in P equals0$250 $200$225x 100%= 22.2%The % change in Q equals12 810x 100%= 40.0%The price elasticity of demand equals40/22.2 = 1.845Calculating Percentage Changes4545What determines price elasticity?To learn the determinants of price elasticity, we look at a series of examples.

Each compares two common goods. In each example:Suppose the prices of both goods rise by 20%. The good for which Qd falls the most (in percent) has the highest price elasticity of demand. Which good is it? Why? What lesson does the example teach us about the determinants of the price elasticity of demand? 0464646The Determinants of Price ElasticityThe price elasticity of demand depends on:the extent to which close substitutes are availablewhether the good is a necessity or a luxuryhow broadly or narrowly the good is definedthe time horizon elasticity is higher in the long run than the short run 0474747EXAMPLE 1: Insulin vs. Caribbean CruisesThe prices of both of these goods rise by 20%. For which good does Qd drop the most? Why?To millions of diabetics, insulin is a necessity. A rise in its price would cause little or no decrease in demand. A cruise is a luxury. If the price rises, some people will forego it. Lesson: Price elasticity is higher for luxuries than for necessities. 04848EXAMPLE 2: Breakfast cereal vs. SunscreenThe prices of both of these goods rise by 20%. For which good does Qd drop the most? Why?Breakfast cereal has close substitutes (e.g., pancakes, Eggo waffles, leftover pizza), so buyers can easily switch if the price rises. Sunscreen has no close substitutes, so consumers would probably not buy much less if its price rises. Lesson: Price elasticity is higher when close substitutes are available. 04949EXAMPLE 3: Blue Jeans vs. ClothingThe prices of both goods rise by 20%. For which good does Qd drop the most? Why?For a narrowly defined good such as blue jeans, there are many substitutes (black jeans, khakis, Grey Jeans).

There are fewer substitutes available for broadly defined goods. Actually, there is no substitutes for clothing.

Lesson: Price elasticity is higher for narrowly defined goods than broadly defined ones. 05050EXAMPLE 4: Car Fuel in the Short Run vs. Car Fuel in the Long RunThe price of petrol rises 20%. Does Qd drop more in the short run or the long run? Why?Theres not much people can do in the short run, other than ride the bus or carpool. In the long run, people can buy smaller cars or live closer to where they work.

Lesson: Price elasticity is higher in the long run than the short run. 0515152The Variety of Demand CurvesThe price elasticity of demand is closely related to the slope of the demand curve. Rule of thumb: The flatter the curve, the bigger the elasticity. The steeper the curve, the smaller the elasticity. Five different classifications of D curves.0525253Q1P1DPerfectly inelastic demand (one extreme case)PQP2P falls by 10%Q changes by 0%00%10%= 0Price elasticity of demand=% change in Q% change in P=Consumers price sensitivity:D curve:Elasticity:verticalnone05353If Q doesnt change, then the percentage change in Q equals zero, and thus elasticity equals zero.

It is hard to think of a good for which the price elasticity of demand is literally zero. Take insulin, for example. A sufficiently large price increase would probably reduce demand for insulin a little, particularly among people with very low incomes and no health insurance.

However, if elasticity is very close to zero, then the demand curve is almost vertical. In such cases, the convenience of modeling demand as perfectly inelastic probably outweighs the cost of being slightly inaccurate.54Inelastic demandPQQ1P1Q2P2Q rises less than 10%0< 10%10%< 1Price elasticity of demand=% change in Q% change in P=P falls by 10%Consumers price sensitivity:D curve:Elasticity:relatively steeprelatively low< 15454An example: Student demand for textbooks that their professors have required for their courses.

Here, its a little more clear that elasticity would be small, but not zero. At a high enough price, some students will not buy their books, but instead will share with a friend, or try to find them in the library, or just take copious notes in class.

Another example: Gasoline in the short run.

55Unit elastic demandPQQ1P1Q2P2Q rises by 10%010%10%= 1Price elasticity of demand=% change in Q% change in P=P falls by 10%Consumers price sensitivity:Elasticity:intermediate1D curve:intermediate slope555556Elastic demandPQQ1P1Q2P2Q rises more than 10%0> 10%10%> 1Price elasticity of demand=% change in Q% change in P=P falls by 10%Consumers price sensitivity:D curve:Elasticity:relatively flatrelatively high> 15656A good example here would be breakfast cereal, or nearly anything with readily available substitutes. An elastic demand curve is flatter than a unit elastic demand curve (which itself is flatter than an inelastic demand curve).

57DPerfectly elastic demand (the other extreme)PQP1Q1P changes by 0%Q changes by any %0Very Large Very Low(almost 0%)= infinityQ2P2 =Consumers price sensitivity:D curve:Elasticity:infinityhorizontalextremePrice elasticity of demand=% change in Q% change in P=5757Heres a good real-world example of a perfectly elastic demand curve, which foreshadows an upcoming chapter on firms in competitive markets. Suppose you run a small family farm in Jodhpur. Your main crop is Bazra. The demand curve in this market is downward-sloping, and the market demand and supply curves determine the price of Bazra. Suppose that price is Rs. 50/Kg.

Now consider the demand curve facing you, the individual Bazra farmer. If you charge a price of Rs.50, you can sell as much or as little as you want. If you charge a price even just a little higher than Rs. 50, demand for YOUR Bazra will fall to zero: Buyers would not be willing to pay you more than Rs.50 when they could get the same Bazra elsewhere for Rs. 50. Similarly, if you drop your price below Rs. 50, then demand for YOUR Bazra will become enormous (not literally infinite, but almost infinite): if other Bazra farmers are charging Rs.50 and you charge less, then EVERY buyer will want to buy Bazra from you.

Why is the demand curve facing an individual producer perfectly elastic? Recall that elasticity is greater when lots of close substitutes are available. In this case, you are selling a product that has many perfect substitutes: the wheat sold by every other farmer is a perfect substitute for the wheat you sell.

Problem58Use the following information to calculate the price elasticity of demand for hotel rooms:if P = $70, Qd = 5000if P = $90, Qd = 3000

58Answers59Use midpoint method to calculate % change in Qd(5000 3000)/4000 = 50%% change in P($90 $70)/$80 = 25%The price elasticity of demand equals50%25%= 2.059You design websites for local businesses. You charge $200 per website, and currently sell 12 websites per month. Your costs are rising (including the opportunity cost of your time), so you consider raising the price to $250.

The law of demand says that you wont sell as many websites if you raise your price.

How many fewer websites? How much will your revenue fall, or might it increase? A scenario060606061Price Elasticity and Total RevenueContinuing our scenario, if you raise your pricefrom $200 to $250, would your revenue rise or fall?Revenue = P x Q A price increase has two effects on revenue:Higher P means more revenue on each unit you sell. But you sell fewer units (lower Q), due to Law of Demand.Which of these two effects is bigger? It depends on the price elasticity of demand. 06161It should be clear that making the best possible decision would require information about the likely effects of the price increase on revenue. That is why elasticity is so helpful, as we will now see.

62If demand is elastic, then price elast. of demand > 1 % change in Q > % change in PThe fall in revenue from lower Q is greater than the increase in revenue from higher P, so revenue falls. Revenue = P x Q Price elasticity of demand=Percentage change in QPercentage change in P0Price Elasticity and Total Revenue626263Price Elasticity and Total RevenueElastic demand(elasticity = 1.8)PQD$20012If P = $200, Q = 12 and revenue = $2400. When D is elastic, a price increase causes revenue to fall. 0$2508If P = $250, Q = 8 and revenue = $2000.lost revenue due to lower Qincreased revenue due to higher PDemand for your websites636364Price Elasticity and Total RevenueIf demand is inelastic, then price elast. of demand < 1 % change in Q < % change in PThe fall in revenue from lower Q is smaller than the increase in revenue from higher P, so revenue rises. In our example, suppose that Q only falls to 10 (instead of 8) when you raise your price to $250. Revenue = P x Q Price elasticity of demand=Percentage change in QPercentage change in P0646465Price Elasticity and Total RevenueNow, demand is inelastic: elasticity = 0.82PQD$20012If P = $200, Q = 12 and revenue = $2400. $25010If P = $250, Q = 10 and revenue = $2500.When D is inelastic, a price increase causes revenue to rise. 0lost revenue due to lower QDemand for your websitesincreased revenue due to higher P

6565Elasticity, Revenue, Profit: Summary66

66A.Pharmacies raise the price of insulin by 10%. Does total Revenue on insulin rise or fall? B.As a result of a fare war, the price of a luxury cruise falls 20%. Does luxury cruise companies total revenue rise or fall? Problem6767Answers68A.Pharmacies raise the price of insulin by 10%. Does total revenue from insulin rise or fall? Revenue = P x Q Since demand is inelastic, Q will fall less than 10%, so Revenue rises.68Answers69B.As a result of a fare war, the price of a luxury cruise falls 20%. Does luxury cruise companies total revenue rise or fall? Revenue = P x QThe fall in P reduces revenue, but Q increases, which increases revenue. Which effect is bigger? Since demand is elastic, Q will increase more than 20%, so revenue rises.69The manager of the Sell-Rite drug store accidentally mismarked a shipment of 20-pound bags of charcoal at $4.38 instead of the regular price of $5.18. At the end of a week, the store's inventory of 200 bags of charcoal was completely sold out. The store normally sells an average of 150 bags per week. What is the store's price elasticity of demand for charcoal? Give an economic interpretation of the numerical value obtained.

Problem7070Problem71Consider the following demand schedule for DVDs.

Compute the Total Revenue and Price Elasticity of demand (between two successive points like points A and B) on the demand curve to be drawn from this schedule and generate two additional columns in the table above.Graph the prices and quantity and indicate the region on the graph, where demand is elastic, unitary elastic and inelastic. Now comparing the two new columns you generated in part (a) verify whether your calculation is consistent with the theoretical relationship you learnt between Total Revenue and Elasticity. You can consider the possible points on the demand curve other than the points given here to support your answer.

PointsPrice (Rs.)Quantity Demanded60B.410C.220D.03071Other Types of Elasticity of DemandIncome elasticity of demand: measures the response of Qd to a change in consumer incomeIncome elasticity of demand=Percent change in QdPercent change in incomeRecall : An increase in income causes an increase in demand for a normal good. Hence, for normal goods, income elasticity > 0.For inferior goods, income elasticity < 0. 727272Cross-price elasticity of demand: measures the response of demand for one good to changes in the price of another good Cross-price elast. of demand=% change in Qd for good 1 % change in price of good 2For substitutes, cross-price elasticity > 0 (e.g., an increase in price of mutton causes an increase in demand for chicken) For complements, cross-price elasticity < 0 (e.g., an increase in price of computers causes decrease in demand for software)73Other Types of Elasticity of Demand7373Promotional/Advertising Elasticity of demand:

Advertising Elasticity=% change in Qd for good% change in Advertising Expenditure74Other Types of Elasticity of Demand

7474ProblemSuppose Xerox outsources the manufacturing of an important component of its laser jet printer to Canon. As a part of the arrangement, Xerox has to share some of important features of the product with Canon. Canon takes advantage of it and launches cheaper laser printer in the market. The Canon product is 90% identical to the Xerox laser printer in terms of looks, features and after-sales services. In order to compete in the market, in the short run, one obvious way out for Xerox is to make a new contract with another firm which increases the cost of production of Xerox printer.

Assume that the Xerox Printer Market was in equilibrium before Canon launched its product. Using a demand-supply graph, answer if there would be any change in market equilibrium in the Xerox printer market.

Now suppose, a smart MBA with an engineering degree joins Xerox. After working for six months at Xerox, he/she presents a new business model to Xerox management which involves manufacturing of the important component (referred earlier) by Xerox itself at lower cost than the cost of outsourcing. Will this new business plan change the new equilibrium (if any) you got in part (a)?

0757575ProblemA survey indicated that chocolate is Americans favorite ice cream flavor. A severe drought in the Midwest causes dairy farmers to reduce the number of milk-producing cattle in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream. At the same time a new report by the American Medical Association reveals that chocolate does, in fact, have significant health benefits. Assume that the Chocolate Ice Cream market was in equilibrium. Using the tool of demand and supply, analyze the impact of the changing scenarios on equilibrium quantity demanded and price of Chocolate Ice Cream. If you use graph, label it properly.

0767676ProblemAmazon.com, the online bookseller, wants to increase its total revenue. One strategy is to offer a 10% discount on every book it sells. Amazon.com knows that its customers can be divided into two distinct groups according to their likely responses to the discount. The accompanying table shows how the two groups respond to the discount.

Calculate the price elasticities of demand for group A and group B. Explain how the discount will affect total revenue from each group. If Amazon.com wants to increase its total revenue, should discounts be offered to group A or to group B, to neither group, or to both groups?

077

7777Problem078At an Asian Mobile Service provider, the demand for voice calls had an own price elasticity of ( 0.085) and cross price elasticity with respect to the price of SMS of ( 0.078). The demand for SMS had an own price elasticity of (0.03) and cross price elasticity with repect to the price of voice calls of ( 0.003).(Source: Youngsoo Kim, Rahul Telang, William B. Vogt, and Ramayya Krishnan, An Empirical analysis of mobile voice service and SMS: A structural model Management Science, 2010)

For which service was the demand more price elastic? (2 Points)How would you describe the relation between the demand for voice calls and SMS? Which is the relatively stronger complements/substitutes? (i) SMS for voice calls, or (ii) voice calls for SMS? Describe the impact on revenues from (i) voice and (ii) SMS if the provider were to raise the price of voice calls by 5%. 7878Empirical Estimates of Price Elasticity of Demand079

7979Empirical Estimates of Income Elasticity of Demand080

8080Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand

Chart10123456

market demand

Helen's D curveDemandgood = Latteper monthperson 1person 2marketPQdQdQd$0.0016816$1.0014714$2.0012612$3.0010510$4.00848$5.00636$6.00424

Helen's D curve0000000

market demand