Note: The word Points used here means any nations currency. Price is in "Points". The word Units is used for Units of Supply
Further Note: The concepts used here include RSC Reverse Supply Coordinate.
What if the Y Price Axis had the points: 1, 2, 3, 4, 5, 6, 7, 8, 9. What if the X Supply Axies had the units: 9, 8, 7, 6, 5, 4, 3, 2, 1.
It can be said the Demand Price 1 points pairs up with the Supply Units of 9. It can also be said the Demand Price of 9 points pairs up with the Supply Units of 1.
The data tabulation in order is as follows.
Price: 1, 2, 3, 4, 5, 6, 7, 8, 9.
Supply (RSC): 9, 8, 7, 6, 5, 4, 3, 2, 1.
The first two (2) intercepts to draw the first line on the graph are 0,1 and 0,9. The second two (2) intercepts to draw the second line are 0,9 and 0,9. The SDC Supply Demand Continuum Band is now formed.
The band indicates the following: On the Supply Side, 9 units being offered at 1 point per unit equals 9 points. On the Demand Side, 1 unit being offered at 9 points per unit also equals 9 points. The optimum unit price in this example is 5 units offered at 5 points per unit yielding 25 points total.
The Optimum Unit Price Line is drawn from 0,9 to 9,0.
For this example, this is the best total points that can be derived and gained from any combination of unit price.
William Charles Simpson 1st Write: Sat, Jan 17, '04 2nd Write: Wed, Aug 09, '06 Santa Cruz CA USA
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