{UTF-8}
effect of price on demand A=
	EXP(demand elasticity * LN(PRICE A / PRICE B))
	~	Dmnl
	~		|

effect of price on demand B=
	EXP(demand elasticity * LN(PRICE B / PRICE A))
	~	Dmnl
	~		|

baseline profit A=
	50000
	~	$/Month
	~		|

baseline profit B=
	50000
	~	$/Month
	~		|

change in price A=
	change in unit cost A * "proportional mark-up A"
	~	$/(Month*chair)
	~		|

change in price B=
	change in unit cost B * "proportional mark-up B"
	~	$/(Month*chair)
	~		|

change in unit cost A=
	target change in unit cost A * efficiency of investment A / time to adjust cost A
	~	$/(chair*Month)
	~		|

change in unit cost B=
	target change in unit cost B * efficiency of investment B / time to adjust cost B
	~	$/(Month*chair)
	~		|

total costs B=
	UNIT COST B * demand B
	~	$/Month
	~		|

demand A=
	reference demand * effect of price on demand A
	~	chair/Month
	~		|

demand B=
	reference demand * effect of price on demand B
	~	chair/Month
	~		|

demand elasticity=
	-1
	~	Dmnl
	~		|

effect on unit cost A=
	UNIT COST A * effect of price on demand A / productivity shock A
	~	$/chair
	~		|

effect on unit cost B=
	UNIT COST B * effect of price on demand B / productivity shock B
	~	$/chair
	~		|

efficiency of investment A=
	1
	~	Dmnl
	~		|

efficiency of investment B=
	1
	~	Dmnl
	~		|

previous supply A=
	1000
	~	chair/Month
	~		|

previous supply B=
	1000
	~	chair/Month
	~		|

PRICE A= INTEG (
	change in price A,
		100)
	~	$/chair
	~		|

PRICE B= INTEG (
	change in price B,
		100)
	~	$/chair
	~		|

productivity shock A=
	1
	~	Dmnl
	~		|

productivity shock B=
	1
	~	Dmnl
	~		|

profit A=
	revenue A - total costs A
	~	$/Month
	~		|

profit B=
	revenue B - total costs B
	~	$/Month
	~		|

"proportional mark-up A"=
	demand A / supply A
	~	Dmnl
	~		|

"proportional mark-up B"=
	demand B / supply B
	~	Dmnl
	~		|

reference demand=
	2000
	~	chair/Month
	~		|

revenue A=
	PRICE A * demand A
	~	$/Month
	~		|

revenue B=
	PRICE B * demand B
	~	$/Month
	~		|

supply A=
	previous supply A * profit A / baseline profit A
	~	chair/Month
	~		|

supply B=
	previous supply B * profit B / baseline profit B
	~	chair/Month
	~		|

target change in unit cost A=
	effect on unit cost A - UNIT COST A
	~	$/chair
	~		|

target change in unit cost B=
	effect on unit cost B - UNIT COST B
	~	$/chair
	~		|

time to adjust cost A=
	12
	~	Month
	~		|

time to adjust cost B=
	12
	~	Month
	~		|

total costs A=
	UNIT COST A * demand A
	~	$/Month
	~		|

UNIT COST A= INTEG (
	change in unit cost A,
		50)
	~	$/chair
	~		|

UNIT COST B= INTEG (
	change in unit cost B,
		50)
	~	$/chair
	~		|

********************************************************
	.Control
********************************************************~
		Simulation Control Parameters
	|

FINAL TIME  = 100
	~	Month
	~	The final time for the simulation.
	|

INITIAL TIME  = 0
	~	Month
	~	The initial time for the simulation.
	|

SAVEPER  = 
        TIME STEP
	~	Month [0,?]
	~	The frequency with which output is stored.
	|

TIME STEP  = 1
	~	Month [0,?]
	~	The time step for the simulation.
	|

\\\---/// Sketch information - do not modify anything except names
V300  Do not put anything below this section - it will be ignored
*View 1
$192-192-192,0,Times New Roman|12||0-0-0|0-0-0|0-0-255|-1--1--1|-1--1--1|96,96,55,0
10,1,UNIT COST A,583,149,40,20,3,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,2,PRICE A,583,298,40,20,3,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,3,PRICE B,584,495,40,20,3,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,4,UNIT COST B,585,648,40,20,3,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
12,5,48,714,148,10,8,0,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,6,8,1,4,0,0,22,0,0,0,-1--1--1,,1|(645,145)|
1,7,8,5,100,0,0,22,0,0,0,-1--1--1,,1|(691,145)|
11,8,48,673,145,6,8,34,3,0,0,1,0,0,0
10,9,change in unit cost A,673,169,43,16,40,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
12,10,48,712,294,10,8,0,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,11,13,2,4,0,0,22,0,0,0,-1--1--1,,1|(647,294)|
1,12,13,10,100,0,0,22,0,0,0,-1--1--1,,1|(692,294)|
11,13,48,677,294,6,8,34,3,0,0,1,0,0,0
10,14,change in price A,677,311,53,9,40,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
12,15,48,712,502,10,8,0,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,16,18,3,4,0,0,22,0,0,0,-1--1--1,,1|(646,497)|
1,17,18,15,100,0,0,22,0,0,0,-1--1--1,,1|(691,497)|
11,18,48,675,497,6,8,34,3,0,0,1,0,0,0
10,19,change in price B,675,514,53,9,40,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
12,20,48,713,649,10,8,0,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,21,23,4,4,0,0,22,0,0,0,-1--1--1,,1|(646,647)|
1,22,23,20,100,0,0,22,0,0,0,-1--1--1,,1|(691,647)|
11,23,48,673,647,6,8,34,3,0,0,1,0,0,0
10,24,change in unit cost B,673,671,43,16,40,3,0,40,-1,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,25,time to adjust cost A,829,27,42,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,26,efficiency of investment A,830,71,40,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,27,target change in unit cost A,832,166,49,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,28,effect on unit cost A,1004,235,40,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,29,productivity shock A,1126,232,35,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,30,effect of price on demand A,1003,315,44,17,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,31,demand A,868,317,32,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,32,"proportional mark-up A",582,219,36,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,33,supply A,365,299,28,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,34,profit A,341,186,23,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,35,revenue A,434,223,31,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,36,previous supply A,245,350,53,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,37,baseline profit A,241,235,49,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,38,total costs A,585,75,29,12,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,39,25,8,1,0,0,0,0,64,0,-1--1--1,,1|(740,80)|
1,40,26,8,1,0,0,0,0,64,0,-1--1--1,,1|(744,102)|
1,41,27,8,1,0,0,0,0,64,0,-1--1--1,,1|(743,131)|
1,42,1,27,1,0,0,0,0,64,0,-1--1--1,,1|(717,114)|
1,43,1,38,0,0,0,0,0,64,0,-1--1--1,,1|(583,114)|
1,44,31,38,1,0,0,0,0,64,0,-1--1--1,,1|(753,143)|
1,45,38,34,1,0,0,0,0,64,0,-1--1--1,,1|(458,88)|
1,46,34,33,1,0,0,0,0,64,0,-1--1--1,,1|(333,236)|
1,47,36,33,0,0,0,0,0,64,0,-1--1--1,,1|(298,327)|
1,48,37,33,0,0,0,0,0,64,0,-1--1--1,,1|(296,263)|
1,49,35,34,0,0,0,0,0,64,0,-1--1--1,,1|(394,207)|
1,50,2,35,1,0,0,0,0,64,0,-1--1--1,,1|(508,266)|
1,51,31,35,1,0,0,0,0,64,0,-1--1--1,,1|(642,202)|
1,52,33,32,0,0,0,0,0,64,0,-1--1--1,,1|(460,263)|
1,53,32,13,0,0,0,0,0,64,0,-1--1--1,,1|(631,258)|
1,54,31,32,1,0,0,0,0,64,0,-1--1--1,,1|(734,250)|
1,55,30,31,0,0,0,0,0,64,0,-1--1--1,,1|(936,315)|
1,56,2,30,1,0,0,0,0,64,0,-1--1--1,,1|(809,359)|
10,57,reference demand,1083,416,34,14,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,58,demand elasticity,1180,416,35,14,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,60,57,31,0,0,0,0,0,64,0,-1--1--1,,1|(976,366)|
1,61,29,28,0,0,0,0,0,64,0,-1--1--1,,1|(1074,232)|
1,62,28,27,0,0,0,0,0,64,0,-1--1--1,,1|(924,203)|
1,63,1,28,1,0,0,0,0,64,0,-1--1--1,,1|(781,219)|
1,64,30,28,0,0,0,0,0,64,0,-1--1--1,,1|(1003,281)|
1,65,8,14,0,0,0,0,0,64,0,-1--1--1,,1|(674,219)|
1,66,3,30,0,0,0,0,0,64,0,-1--1--1,,1|(787,407)|
10,67,effect of price on demand B,999,511,46,18,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,68,2,67,0,0,0,0,0,64,0,-1--1--1,,1|(786,402)|
1,69,3,67,1,0,0,0,0,64,0,-1--1--1,,1|(809,452)|
10,71,demand B,871,515,32,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,72,supply B,363,470,28,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,73,baseline profit B,241,538,49,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,74,previous supply B,244,412,53,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,75,"proportional mark-up B",577,580,36,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,76,revenue B,432,556,31,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,77,target change in unit cost B,821,672,49,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,78,efficiency of investment B,821,733,40,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
10,79,time to adjust cost B,822,775,42,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,80,67,71,0,0,0,0,0,64,0,-1--1--1,,1|(934,512)|
1,81,57,71,0,0,0,0,0,64,0,-1--1--1,,1|(978,465)|
1,82,23,18,0,0,0,0,0,64,0,-1--1--1,,1|(673,578)|
1,83,71,76,1,0,0,0,0,64,0,-1--1--1,,1|(644,608)|
1,84,3,76,0,0,0,0,0,64,0,-1--1--1,,1|(505,526)|
10,85,profit B,335,597,23,9,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,86,76,85,0,0,0,0,0,64,0,-1--1--1,,1|(389,573)|
1,87,71,75,1,0,0,0,0,64,0,-1--1--1,,1|(732,564)|
1,88,72,75,0,0,0,0,0,64,0,-1--1--1,,1|(456,518)|
1,89,85,72,1,0,0,0,0,64,0,-1--1--1,,1|(327,529)|
10,90,total costs B,585,717,25,14,8,131,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,91,77,23,1,0,0,0,0,64,0,-1--1--1,,1|(728,674)|
1,92,78,23,1,0,0,0,0,64,0,-1--1--1,,1|(731,707)|
1,93,79,23,1,0,0,0,0,64,0,-1--1--1,,1|(733,734)|
1,94,4,90,0,0,0,0,0,64,0,-1--1--1,,1|(585,678)|
1,95,71,90,1,0,0,0,0,64,0,-1--1--1,,1|(769,641)|
1,96,4,77,1,0,0,0,0,64,0,-1--1--1,,1|(684,708)|
1,97,74,72,0,0,0,0,0,64,0,-1--1--1,,1|(296,437)|
1,98,73,72,0,0,0,0,0,64,0,-1--1--1,,1|(295,507)|
1,99,90,85,1,0,0,0,0,64,0,-1--1--1,,1|(460,696)|
1,100,75,18,0,0,0,0,0,64,0,-1--1--1,,1|(627,536)|
10,101,effect on unit cost B,999,593,40,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,102,4,101,1,0,0,0,0,64,0,-1--1--1,,1|(786,589)|
1,103,67,101,0,0,0,0,0,64,0,-1--1--1,,1|(999,546)|
1,104,101,77,0,0,0,0,0,64,0,-1--1--1,,1|(916,629)|
10,105,productivity shock B,1129,592,35,16,8,3,0,40,0,0,0,0,0-0-0,0-0-0,Arial|10||0-0-0
1,106,105,101,0,0,0,0,0,64,0,-1--1--1,,1|(1073,592)|
1,107,58,30,0,0,0,0,0,64,0,-1--1--1,,1|(1100,370)|
1,108,58,67,0,0,0,0,0,64,0,-1--1--1,,1|(1099,457)|
///---\\\
:L<%^E!@
1:baseline.vdf
9:baseline
22:$,Dollar,Dollars,$s
22:Hour,Hours
22:Month,Months
22:Person,People,Persons
22:Unit,Units
22:Week,Weeks
22:Year,Years
22:Day,Days
23:0
15:0,0,0,0,0,0
19:55,0
27:2,
34:0,
4:Time
5:demand A
35:Date
36:YYYY-MM-DD
37:2000
38:1
39:1
40:2
41:0
24:0
25:100
26:100