TABLE 3.4 Sunbest Demand and Supply Conditions
Operating Environment
for Demand
Price of Sunbest
(P)
Price of Soda
(PS)
Disposable
Income (Y)
Temperature
(T)
Operating Environment
for Demand
Demand if All
Factors Change
(QD)
Quantity
Demanded if
Price Chgs.
Only(QD)
Demand if Temp.
Chgs. Only (QD)
Optimistic Scenario 1 $6.00 $5.00 $67,500 81.25 Optimistic Scenario 1 13,062,500 0 25,062,500
2 5.80 4.90 66,500 81.00 2 15,450,000 5,000,000 25,050,000
Operating Environment
for Supply
Price of Sunbest
(P)
Price of Labor
(PL)
Cost of Capital
(PK)
Temperature
(T)
Operating Environment
for Supply
Supply if All
Factors Change
(QS)
Quantity
Supplied if
Price Chgs.
Only(QS)
Supply if Temp.
Chgs. Only (QS)
Optimistic Scenario 1 $6.00 $16.75 7.50 81.25 Optimistic Scenario 1 33,237,500 33,000,000 24,812,500
Operating Environment
for Demand and Supply
Surplus or
Shortage All
Factors Change
Surplus or
Shortage
Price Chg.
Only
Surplus or Shortage
Temp. Chg. Only
33,000,000 -250,000
CASE 3 Spreadsheet Analysis of Sunbest Demand and Supply Conditions
Demand if Quantity Demanded if Demand if
Operating Environment Price of Sunbest Price of Soda Disposable Income Temperature All Factors Change Price Chg. Only Temp. Chg. Only
for Demand (P)
(PS) (Y) (T) (QD)(QD)(QD)
Supply if Quantity Supplied if Supply if
Operating Environment Price of Sunbest Price of Labor Cost of Capital Temperature All Factors Change Price Chg. Only Temp. Chg. Only
for Supply (P)
(PL)(PK) (T) (QS)(QS)(QS)
Operating Environment Surplus or Shortage Surplus or Shortage Surplus or Shortage
for Demand & Supply All Factors Change Price Chg. Only Temp. Chg. Only
Optimistic Scenario 1 21,175,000 33,000,000 -250,000