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You have been learning a lot about supply and demand, and may be wondering what it all has to do with you. This activity will put you in the position of a business owner where you can experience first-hand the joys and sorrows of the effects of supply and demand fluctuations in the market… for lemonade! The game is deceptively simple to play. For each day, you decide how many pitchers of lemonade to make and what to charge per cup (each pitcher makes 10 cups). The higher the difficulty setting, though, the more variables are involved. As you play through the game and record your progress, be thinking about the essential question: How do supply and demand affect every-day business operations?
NOTE: Failure to complete this assignment will not only result in a zero, but also in two unexcused absences, since its purpose is to help make up for missed days of school.
Round 1: “Easy” Difficulty Setting
For this round, you will be trying to figure out the equilibrium price and quantity in an ideal market (where other variables remain constant, including weather and cost-per-pitcher). You will have seven days to figure out the best price to charge and the right number of pitchers to prepare in order to make the most profit. Remember – you don’t want to run out before the demand runs out (shortage), nor do you want to have too much leftover lemonade and waste money (surplus).
Round 2: “Medium” Difficulty Setting
On this difficulty setting, the weather will change and events in the news will have an impact on demand. Make sure you pay attention to both so you can adjust your price and number of pitchers accordingly. Remember – your goal is still to make as much profit as you can.
Round 3: “Hard” Difficulty Setting
This round works just like “Medium,” with the added complication of a fluctuation in the lemon market. This means that in addition to changes in weather and news, you will have to deal with a changing cost-per-pitcher.
NOTE: Failure to complete this assignment will not only result in a zero, but also in two unexcused absences, since its purpose is to help make up for missed days of school.
Round 1: “Easy” Difficulty Setting
For this round, you will be trying to figure out the equilibrium price and quantity in an ideal market (where other variables remain constant, including weather and cost-per-pitcher). You will have seven days to figure out the best price to charge and the right number of pitchers to prepare in order to make the most profit. Remember – you don’t want to run out before the demand runs out (shortage), nor do you want to have too much leftover lemonade and waste money (surplus).
Round 2: “Medium” Difficulty Setting
On this difficulty setting, the weather will change and events in the news will have an impact on demand. Make sure you pay attention to both so you can adjust your price and number of pitchers accordingly. Remember – your goal is still to make as much profit as you can.
Round 3: “Hard” Difficulty Setting
This round works just like “Medium,” with the added complication of a fluctuation in the lemon market. This means that in addition to changes in weather and news, you will have to deal with a changing cost-per-pitcher.