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Explain why Calvin's ideas about supply and demand are wrong.

Explain why Calvin's ideas about supply and demand are wrong.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Explain why Calvin's ideas about supply and demand are wrong.
 
calvin and HODDES YO HOW DO YOU JUSTIFY CHARGING 15 DOLLARS?? SUPPLY AND DEMAND. 15 BUCKS A GLASS? THAT'S RIGHT! WANT SOME? YOU'RE OUT OF YOUR MIND. I'M GOING HOME TO DRINK SOMETHING ELSE LEMONADE $15 AND AS PRESIDENT AND CEO. OF THE COMPANY, I DEMAND AN EXORBITANT ANNUAL SALARY! SURE! PUT ME OUT OF A JOB IT'S YOU ANTI-BUSINESS TYPES WHO RUIN THE ECONOMY $150 LEMONGRE GLASS LEMONS AND AS MY OWN EMPLOYEE, I DEMAND A HIGH HOURLY WAGE AND ALL SORTS OF COMPANY BENEFITS AND THEN THERE'S OVERHEAD AND ACTUAL PRODUCTION COSTS! LEMONAGE 8 $15 GLOSS LEMONADE 315 GLASS WHERE'S THE DEMAND?! I DON'T SEE ANY DEMAND! BUT IT LOOKS LIKE YOU JUST THREW A LEMON IN SOME SLUDGE WATER! THERE'S LOTS OF DEMAND! G LEMON DE $15 LAS WELL, I HAVE TO CUT EXPENSES SOMEWHERE IF I WANT TO STAY COMPETITIVE YEAH? SURE! AS THE SOLE STOCKHOLDER IN THIS ENTERPRISE, I DEMAND MONSTROUS PROFIT ON MY INVESTMENT. WHAT IF I GOT SICK FROM THAT? "CAVEAT EMPTORIS THE MOTTO WE STAND BEHIND! I'D HAVE TO CHARGE MORE IF WE FOLLOWED HEALTH AND ENVIRONMENTAL REGULATIONS. I NEED TO BE SUBSIDIZED.
Transcribed Image Text:calvin and HODDES YO HOW DO YOU JUSTIFY CHARGING 15 DOLLARS?? SUPPLY AND DEMAND. 15 BUCKS A GLASS? THAT'S RIGHT! WANT SOME? YOU'RE OUT OF YOUR MIND. I'M GOING HOME TO DRINK SOMETHING ELSE LEMONADE $15 AND AS PRESIDENT AND CEO. OF THE COMPANY, I DEMAND AN EXORBITANT ANNUAL SALARY! SURE! PUT ME OUT OF A JOB IT'S YOU ANTI-BUSINESS TYPES WHO RUIN THE ECONOMY $150 LEMONGRE GLASS LEMONS AND AS MY OWN EMPLOYEE, I DEMAND A HIGH HOURLY WAGE AND ALL SORTS OF COMPANY BENEFITS AND THEN THERE'S OVERHEAD AND ACTUAL PRODUCTION COSTS! LEMONAGE 8 $15 GLOSS LEMONADE 315 GLASS WHERE'S THE DEMAND?! I DON'T SEE ANY DEMAND! BUT IT LOOKS LIKE YOU JUST THREW A LEMON IN SOME SLUDGE WATER! THERE'S LOTS OF DEMAND! G LEMON DE $15 LAS WELL, I HAVE TO CUT EXPENSES SOMEWHERE IF I WANT TO STAY COMPETITIVE YEAH? SURE! AS THE SOLE STOCKHOLDER IN THIS ENTERPRISE, I DEMAND MONSTROUS PROFIT ON MY INVESTMENT. WHAT IF I GOT SICK FROM THAT? "CAVEAT EMPTORIS THE MOTTO WE STAND BEHIND! I'D HAVE TO CHARGE MORE IF WE FOLLOWED HEALTH AND ENVIRONMENTAL REGULATIONS. I NEED TO BE SUBSIDIZED.
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