Copyright (c) B.Achutha 1992 - 2000 Malaysia

Population vs Price

An alternative method of drawing the distribution of Wealth graph is by plotting Population vs Price. This is especially significant for the manufacturers.

Graph D1a shows that revenue peaks when the product is priced below $2. Where as Graph D2a shows that revenue peaks when the product is priced under $3. Revenue being defined as the price of the product multiplied by the total fraction of the population that can pay and mulitpied by the population sample size.