TerryCrewEcon201Session2

TerryCrewEcon201Session2 - them spoiling though. Sometimes...

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Terry Crew ECON 201 Session 2 Supply and Demand In the game “Lemonade Sales”, I found myself a victim to not having the product to meet the demand of my buyers. I would always run out of either ice, cups, or lemons, and then found myself with a “sold-out” sign in front, and millions of potential buyers walking right past me! In a real world situation, this would not have prevented me from making my sales, I would have just not put the ice in with the lemonade in instances where I just ran out of ice. I thought it was very creative how the ice would melt, and lemons would spoil. My initial idea was to purchase the largest quantities of each ingredient. But, then I quickly found out that the ice would melt. I did not find a correlation between having the lemons longer, and
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Unformatted text preview: them spoiling though. Sometimes I would lose no lemons, and other days I would lose four. I found it very effective to buy both the sugar and cups in bulk however. Quickly I came to the realization that just buying 100 cubes of ice would not work for me either. With my price set at just twenty five cents, my customer satisfaction rate was out the roof. However, I was loosing four ice cubes a cup. I cut back on this, and purchased two 100 cube orders, which proved to be sufficient for my sales. In contrast, it was cheaper than buying the 250 order. In the end, I had made over $100, which I thought was fairly good for my first try. In the future, I have the ambition to be a millionaire, but then I will charging more for my cups of lemonade!...
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This document was uploaded on 02/28/2011.

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