Welcome to Mr. Cordier's Stand!
Mr. Cordier (your teacher) has appointed you General Manager! Your main objective is to master the Law of Supply and Demand. You start with $30.00 and 10 trading days. Balance your inventory supply with weather-shifting customer demand to reach Market Equilibrium and maximize profit!
- Law of Demand: As price goes UP, customer demand goes DOWN. Hot weather shifts demand UP!
- Market Surplus (Supply > Demand): Preparing too many cups leads to unsold waste and lost money.
- Market Shortage (Demand > Supply): Preparing too few cups leaves thirsty customers and missed profit.
- Equilibrium (Supply = Demand): Matching supply to demand perfectly yields maximum cash efficiency!
Analyze weather forecasts and pricing tiers to forecast exact customer demand curves.
On Day 5, scale supply with Bank Debt or Investor Equity to open Stand #2!
Eliminate surplus waste and shortage stockouts across both School & Beach locations!
Warm weather brings steady, moderate demand for cold drinks.
π Customer Demand Schedule
Shows how price & weather affect customer quantity demanded:
| Weather | Low Price | Mid Price | High Price |
|---|---|---|---|
| π§οΈ Rainy | 5 | 2 | 0 |
| βοΈοΈ Cool | 9 | 6 | 3 |
| βοΈ Warm | 15 | 11 | 7 |
| π€οΈ Hot | 22 | 16 | 11 |
| π₯ Heatwave | 30 | 24 | 18 |
Expand Supply Capabilities to Stand #2!
Demand is surging! Mr. Cordier found a location for Stand #2 on the Beach Boardwalk. To fund the second stand and expand your supply capacity, you need $50.00 in capital. How will you finance it?
Borrow $50.00 cash from First Student Bank immediately.
- β Receive +$50.00 cash right now.
- β Keep 100% of profits from meeting Beach demand.
- β Must repay $12.00 per day for 5 days ($60 total repayment).
Sell 35% ownership of Stand #2 to an investor in exchange for capital.
- β Receive +$50.00 cash right now.
- β Zero fixed debt payments! No fixed cost burden during low-demand rainy days.
- β Investor takes 35% of all daily profit earned by Stand #2.
Matching Supply & Demand...
Day 1 Complete!
Short explanation text will appear here...
π° Market Ledger & Cashflow Analysis
10-Day Management Complete!
Here is how Mr. Cordier's lemonade enterprise performed under your direction.
π Final Enterprise Scorecard No Financing
βοΈ Mr. Cordier's Supply & Demand Reflection Questions
- Law of Demand: How did raising your price from $2 to $4 affect the number of cups demanded by customers?
- Demand Curve Shifts: How did weather (e.g., Rainy vs. Heatwave) shift total customer demand regardless of price?
- Surplus vs. Shortage: Which was more costly to your businessβover-supplying and incurring spoiled waste, or under-supplying and missing sales?
- Financing Strategy: How did fixed debt repayments affect your ability to finance supply inventory on low-demand days?