Icon

BB-202 Calculating a Demand Curve v05

[Building Blocks] BB-202 Calculating a Demand Curve
Building Blocks (BB-202) - Calculating a Demand CurveFollows a step-by-step method to manually calculate a Demand Curve using FlowVariables.This is not the recommended approach. Instead, use the Profit Engine node or theDemand Curve node to automatically generate Demand Curves. Create a Demand Curve bysweeping the Price from $100 to$200 and capturing the salesresults. The Customer's Willingness ToPay (WTP) for Sprockets doesn'tchange when Price changes -only the Customer's decisionwhether to purchase or not. Loop across all 41 experimentalPrice Points. At each iteration,convert the Price row into a FlowVariable and add it to the InputProduct Array. Set the colors for each salesresult (Quantity, Revenue, andProfit) for plotting in the LineChart. Predict how many Customerswill purchase Sprockets at eachexperimental Price Point, thenloop to the next Price Pointiteration. The Revenue Maximizing Price is$115. The Profit Maximizing Priceis $135. Competitive Story:The supplier for Sprockets enjoys a Monopoly over the Market. The Sprocketssupplier wishes to manually generate a Demand Curve by systematically testing arange of experimental Prices. The supplier wishes to identify the RevenueMaximizing Price as well as the Profit Maximizing Price.WillingnessTo Pay (WTP)for SprocketsExperimentalPricesStaticCostDynamicPriceCalculate QuantityRevenue / ProfitSprocketsProductInputProduct ArraySave OutputProduct ArraySprocketsProductQuantityvs. PriceResult ColumnNamesDemand CurveColorsRevenue / Profitvs. PriceNext PriceExperiment CustomerDistributions CustomerDistributions ConstantValue Column ConstantValue Column Simulate Market Column Rename Column Filter Loop End Row Filter Line Chart(JFreeChart) Table Creator Color Manager Line Chart(JFreeChart) Table Row ToVariable Loop Start Building Blocks (BB-202) - Calculating a Demand CurveFollows a step-by-step method to manually calculate a Demand Curve using FlowVariables.This is not the recommended approach. Instead, use the Profit Engine node or theDemand Curve node to automatically generate Demand Curves. Create a Demand Curve bysweeping the Price from $100 to$200 and capturing the salesresults. The Customer's Willingness ToPay (WTP) for Sprockets doesn'tchange when Price changes -only the Customer's decisionwhether to purchase or not. Loop across all 41 experimentalPrice Points. At each iteration,convert the Price row into a FlowVariable and add it to the InputProduct Array. Set the colors for each salesresult (Quantity, Revenue, andProfit) for plotting in the LineChart. Predict how many Customerswill purchase Sprockets at eachexperimental Price Point, thenloop to the next Price Pointiteration. The Revenue Maximizing Price is$115. The Profit Maximizing Priceis $135. Competitive Story:The supplier for Sprockets enjoys a Monopoly over the Market. The Sprocketssupplier wishes to manually generate a Demand Curve by systematically testing arange of experimental Prices. The supplier wishes to identify the RevenueMaximizing Price as well as the Profit Maximizing Price.WillingnessTo Pay (WTP)for SprocketsExperimentalPricesStaticCostDynamicPriceCalculate QuantityRevenue / ProfitSprocketsProductInputProduct ArraySave OutputProduct ArraySprocketsProductQuantityvs. PriceResult ColumnNamesDemand CurveColorsRevenue / Profitvs. PriceNext PriceExperimentCustomerDistributions CustomerDistributions ConstantValue Column ConstantValue Column Simulate Market Column Rename Column Filter Loop End Row Filter Line Chart(JFreeChart) Table Creator Color Manager Line Chart(JFreeChart) Table Row ToVariable Loop Start

Nodes

Extensions

Links

Download

To use this workflow in KNIME, download it from the below URL and open it in KNIME:

Download Workflow
Created by: Berlin
Created at: 2019-04-22
On NodePit since: 2021-02-05
Last update: 2024-04-27
Created with KNIME version: v4.3.0

Deploy, schedule, execute, and monitor your KNIME workflows locally, in the cloud or on-premises – with our brand new NodePit Runner.

Try NodePit Runner!