Supply

Demand 20 22 24 24 28 30

20 $20

22 $18

24 $16

26 $14

28 $12

30 $10

Profit = Revenue – Cost

Cost Revenue
How much Cost of Unmet TOTAL How much Rev. Unsold TOTAL Profit
was purchase demand COST was from Cases REVENUE
purchased (* $2) ($1) demanded Sale (* ($0.75)
(supply) $3)
20 $40 $40 20 20*3 = 0 $60 $20
$60
$40 2*$1 = $42 22 20* 3= 0 $60 $18
$2 $60
$40 4*$1 = $44 24 $60 0 $60 $16
$4
$40 6*$1 = $46 26 $60 0 $60 $14
$6
$40 8*$1 = $48 28 $60 0 $60 $12
$8
$40 10* $1 = $50 30 $60 0 $60 $10
$10

22 $42 $42 20 2*$0.75 $60 - $19.50

= $1.50 $1.50 =
$61.50
$42 22 0
$42 $2 24 0
$42 $4 26 0
$42 $6 28 0
$42 $8 30 0