Stage 1 Economics Assignment Topic 2- Supply and Demand Experiment In this economics assignment I am trying to find the price that the canteen should charge for a packet of chips (50g), to maximise their revenue. This involved a survey that was given out to different people around Casuarina Senior College. The packet of chips at the canteen were being sold at $1.20 each while at a supermarket they were being sold at $1 each.
5. The canteen should sell a packet of chips for $0.70. As it can be seen on the demand curve that at $0.70 the demand would be high. Also that the canteen would make the most revenue.
6. They would sell 116 packets of chips per week, because chips are cheaper thus encouraging students to buy more.
7. Their revenue would be $53592 in a year.
8. They currently receive $22572, which is $31020 less than the proposed price.
9. The experiment, I believed worked, however I don't believe the results were accurate. The survey, which was filled out, weren't filled accurately.
10. If this experiment were done for real then firstly I would find out the current demand from the canteen to find out their revenue for the year. Also If the survey were filled out by the whole school rather than 30 and then multiplying the 30 by other numbers to get the population of the school.