Bay Roasters Coffee Market — Supply and Demand
This supply-and-demand example models the weekly market for roasted coffee beans sold to Bay Roasters. The vertical axis is price per bag and the horizontal axis is hundreds of bags sold each week. The upward supply curve represents higher marginal costs as the roaster prepares more bags. The downward demand curve represents buyers purchasing fewer bags as prices rise. Their intersection identifies the model's equilibrium price and quantity. The shaded areas make the gains to buyers and sellers visible. It is a teaching model, not a forecast: actual prices also reflect contracts, inventory, quality grades and competing suppliers and seasonal demand.
Open it in the AI editor with a prompt pre-filled — keep what works, change what doesn't.
Scenario
Bay Roasters is explaining its weekly coffee-bean market model to new buyers.
Key decisions
- Market scope: use one weekly local market.
- Supply rule: make marginal costs slope upward.
- Demand rule: make willingness to pay slope downward.
When to reuse this
Use this model to explain equilibrium and surplus in a single competitive market.
Frequently asked questions
What does the intersection mean?
Why does supply slope upward?
Why does demand slope downward?
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