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Economics Playground
One water company, one market. Move a setting and watch shoppers, sales and profit respond, using the same formulas as the live game.
Market settings
What happens
At SAR 12.00 shoppers want 600 bottles. You planned 600, so you sell 600. Revenue SAR 7,200.00, total cost SAR 6,300.00, profit SAR 900.00.
Demand
600 bottles
Sales
600 bottles
Revenue
SAR 7,200.00
Operating profit
SAR 900.00
Shopper benefit (estimate)
SAR 1,800.00
Half of units sold × (SAR 18.00 − price): roughly how much shoppers value the water above what they pay.
Try this next
Supply matches demand at this price.
Save this as “before”, switch to the other market type and change the price. What moves more: sales or profit?
Demand at each price
At SAR 8.00 shoppers want 999 bottles; at SAR 18.00 they want 120. The marker shows your price of SAR 12.00.
| Price (SAR) | Demand (bottles) | Sales (bottles) |
|---|---|---|
| 8.00 | 999 | 600 |
| 8.50 | 950 | 600 |
| 9.00 | 900 | 600 |
| 9.50 | 849 | 600 |
| 10.00 | 800 | 600 |
| 10.50 | 750 | 600 |
| 11.00 | 699 | 600 |
| 11.50 | 650 | 600 |
| 12.00 | 600 | 600 |
| 12.50 | 549 | 549 |
| 13.00 | 500 | 500 |
| 13.50 | 450 | 450 |
| 14.00 | 399 | 399 |
| 14.50 | 350 | 350 |
| 15.00 | 300 | 300 |
| 15.50 | 249 | 249 |
| 16.00 | 200 | 200 |
| 16.50 | 150 | 150 |
| 17.00 | 120 | 120 |
| 17.50 | 120 | 120 |
| 18.00 | 120 | 120 |
Revenue and operating profit at each price
With your current supply and costs, profit is highest at SAR 12.00 (SAR 900.00). That is one answer for these settings, not the only good choice.
| Price (SAR) | Revenue | Operating profit |
|---|---|---|
| 8.00 | SAR 4,800.00 | SAR -1,500.00 |
| 8.50 | SAR 5,100.00 | SAR -1,200.00 |
| 9.00 | SAR 5,400.00 | SAR -900.00 |
| 9.50 | SAR 5,700.00 | SAR -600.00 |
| 10.00 | SAR 6,000.00 | SAR -300.00 |
| 10.50 | SAR 6,300.00 | SAR 0.00 |
| 11.00 | SAR 6,600.00 | SAR 300.00 |
| 11.50 | SAR 6,900.00 | SAR 600.00 |
| 12.00 | SAR 7,200.00 | SAR 900.00 |
| 12.50 | SAR 6,862.50 | SAR 562.50 |
| 13.00 | SAR 6,500.00 | SAR 200.00 |
| 13.50 | SAR 6,075.00 | SAR -225.00 |
| 14.00 | SAR 5,586.00 | SAR -714.00 |
| 14.50 | SAR 5,075.00 | SAR -1,225.00 |
| 15.00 | SAR 4,500.00 | SAR -1,800.00 |
| 15.50 | SAR 3,859.50 | SAR -2,440.50 |
| 16.00 | SAR 3,200.00 | SAR -3,100.00 |
| 16.50 | SAR 2,475.00 | SAR -3,825.00 |
| 17.00 | SAR 2,040.00 | SAR -4,260.00 |
| 17.50 | SAR 2,100.00 | SAR -4,200.00 |
| 18.00 | SAR 2,160.00 | SAR -4,140.00 |
Cost breakdown
| Item | Amount |
|---|---|
| Revenue (600 sold) | SAR 7,200.00 |
| Fixed costs | SAR 2,700.00 |
| Variable costs (600 × SAR 6.00) | SAR 3,600.00 |
| Total cost | SAR 6,300.00 |
| Subsidy received | SAR 0.00 |
| Operating profit | SAR 900.00 |