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  • Monday and Tuesday Betty has a surplus of muffins and is worried they will go bad before she sells them all. Not many customers come in the store so she drops the price from $4 to $2.
  • Betty's Bakery
  • All muffins are $2 today. We made too many muffins and have few customers.
  • For this price I'll take 2 dozen!
  • I'll take 6 assorted muffins please!
  • Wednesday and Thursday Betty has an increase in demand and her supply is decreasing. She raises the price to capture the extra revenue increased demand brings in. 
  • Betty's Bakery
  • Everybody is talking about these muffins! 
  • I should have come yesterday. Oh well, I'll take 6 chocolate.
  • All muffins are $6 today. We have many to choose from and so many customers!
  • Seems a bit high for a muffin but I love them. I'll take 2 banana nut please. 
  • Only 6 Blueberry until Monday.
  • On Friday Betty has a store full of customers and few muffins left. She raises the price really high and limits the purchase quantity in hopes of keeping people in her store. In her opinion they are the best muffins.
  • Betty's Bakery
  • I'll take one. I drove 15 minutes to get here. 
  • All muffins are $12 today. Limit 1 Muffin per customer.
  • No way I'll pay that much! You're crazy!
  • I think I'll wait until you make more. 
  • Maybe next week I'll make more muffins and find a good price point. 
  • Betty decided to find an equilibrium with her muffin pricing. She made more muffins this week than last week and she raised her price to $5 from $4. Because she didn't sell much bread last week she decided to greatly reduce the cost. She is unaware the effect this may have on her muffins. I think it's going to take Betty some time to figure this whole supply and demand concept out. 
  • Betty's Bakery
  • All muffins are $5. First come first serve. Fresh baked bread on sale!
  • This week Betty is selling few muffins but almost all of her bread is gone in the first day. She didn't realize that customers coming in for muffins would change their mind and buy bread at that very low price. 
  • Betty's Bakery
  • I came here for muffins but I'm buying 6 loaves of bread!
  • Muffins are $5 and our bread is only $1!
  • I'll take 3 blueberry muffins and 3 loaves of bread. 
  • Now Betty is out of bread on Thursday and has a lot of muffins left. Few customer are in the store because of rain, and it will continue through the weekend. She is left with no choice but to discount the muffins to increase sales. Her stress is starting to show.
  • Betty's Bakery
  • Do you have anything for the Atkins diet?
  • We're out of bread but our muffins are only $1!
  • I'll take 12 assorted muffins please!
  • Atkins!? In MY bakery!? Yes I do, an exit door.
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