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BB-211 Giffen Goods and Veblen Goods v05

[Building Blocks] BB-211 Giffen Goods and Veblen Goods
Building Blocks (BB-211) - Giffen Goods and Veblen GoodsBoth Giffen Goods and Veblen Goods violate the basic Law of Demand inmicroeconomics. As the Price of these Products increase, so does the WillingnessTo Pay (WTP) of Customers. Mainstream Economics decouples Price from WTPand treats the two as independent variables. When increasing Pricedisproportionally increases WTP the result is an upward-sloping Demand Curve. The Customer's Willingness ToPay (WTP) is proportional to thesquare of the Price:WTP = (Price - 1.0) ^ 2 Create a Demand Curve bysweeping the Price from $1.00 to$2.20 in 61 iterations andcapturing the sales results. Set the colors for each salesresult (Quantity, Revenue, andProfit) then plot the results in theLine Charts. Update the WTP of Customersbased upon the changing Priceof Sprockets. Normally WTP andPrice are independent variables. The Revenue Maximizing Priceand the Profit Maximizing Price ispotentially unlimited. Competitive Story:The supplier for Sprockets enjoys a Monopoly over the Market. CustomerWillingness To Pay (WTP) for Sprockets increases in proportion to the square ofthe Price. The supplier of Sprockets wishes to identify the Revenue MaximizingPrice as well as the Profit Maximizing Price, but cannot as both Revenue and Profitcontinues to rise as Price rises.ExperimentalPricesProductSprocketsMeanWTPTest NextPriceUpdateMarketCalculate QuantityRevenue / ProfitStaticCostSave OutputProduct ArraySprocketsProductQuantityvs. PriceResult ColumnNamesDemand CurveColorsRevenue / Profitvs. Price CustomerDistributions ConstantValue Column Math Formula Group Loop Start CustomerDistributions Simulate Market ConstantValue Column Loop End Row Filter Line Chart(JFreeChart) Table Creator Color Manager Line Chart(JFreeChart) Building Blocks (BB-211) - Giffen Goods and Veblen GoodsBoth Giffen Goods and Veblen Goods violate the basic Law of Demand inmicroeconomics. As the Price of these Products increase, so does the WillingnessTo Pay (WTP) of Customers. Mainstream Economics decouples Price from WTPand treats the two as independent variables. When increasing Pricedisproportionally increases WTP the result is an upward-sloping Demand Curve. The Customer's Willingness ToPay (WTP) is proportional to thesquare of the Price:WTP = (Price - 1.0) ^ 2 Create a Demand Curve bysweeping the Price from $1.00 to$2.20 in 61 iterations andcapturing the sales results. Set the colors for each salesresult (Quantity, Revenue, andProfit) then plot the results in theLine Charts. Update the WTP of Customersbased upon the changing Priceof Sprockets. Normally WTP andPrice are independent variables. The Revenue Maximizing Priceand the Profit Maximizing Price ispotentially unlimited. Competitive Story:The supplier for Sprockets enjoys a Monopoly over the Market. CustomerWillingness To Pay (WTP) for Sprockets increases in proportion to the square ofthe Price. The supplier of Sprockets wishes to identify the Revenue MaximizingPrice as well as the Profit Maximizing Price, but cannot as both Revenue and Profitcontinues to rise as Price rises.ExperimentalPricesProductSprocketsMeanWTPTest NextPriceUpdateMarketCalculate QuantityRevenue / ProfitStaticCostSave OutputProduct ArraySprocketsProductQuantityvs. PriceResult ColumnNamesDemand CurveColorsRevenue / Profitvs. PriceCustomerDistributions ConstantValue Column Math Formula Group Loop Start CustomerDistributions Simulate Market ConstantValue Column Loop End Row Filter Line Chart(JFreeChart) Table Creator Color Manager Line Chart(JFreeChart)

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Created by: Berlin
Created at: 2019-04-23
On NodePit since: 2021-02-05
Last update: 2024-05-01
Created with KNIME version: v4.3.0

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