economicsRespo

While I will admit the reading has been a little hard for me to grasp over this last four weeks, this interactive model of microeconomics in action was a great learning tool.  I understand there are many variables that this could never calculate but it really made me think about the whole picture when it came to pricing my lemonade.  I played seven days on the hard setting and only pulled a profit of $15.60 selling 136 cups of lemonade, this works out to about 11-1/2 cents per cup :  I think I even started with $5.00 so really I pulled in $10.00 for a week’s worth of work.  The weather and price per cup really played a large roll in how many cups were purchased each day.  My best was day six, it was hot and sunny and I set the price at 40 cents and made four pitchers which sold out for a profit of $8.00.  This was a profitable day because I didn’t go overboard on product and the price was right for the consumers.  My worst was day seven, it was rainy and cold and I set the price at 25 cents and made three pitchers and only sold eight cups for a loss of $4.00.  I know it seemed silly to crank out three pitchers of lemonade when it was cold and rainy but day two through four were cold and rainy and I sold out two pitchers each day.  I really enjoyed the interactive model and it showed me that owning a lemonade stand in a rainy climate results in poor return on investment unless there are ten thirsty soccer teams in town and even then no one is getting rich quick.

Comment with your ideas on the business project discussion above in 200 words.

Thank You!