Economics 7 Week Challenge Series – Challenge 6: Buying and Selling Game

Hi Everyone,

Welcome to the Economics 7 Week Challenge Series for 2022. Over 7 weeks, in the months of August and September, I will be running an economics challenge series. This series will consist of 7 challenges. Five of these challenges will be returning from last year’s Challenge Series and two of them are completely new. Below are the list of challenges.

Challenge 1: Auction
Challenge 2: Buying and Selling Game (Business Version)
Challenge 3: Tax Game (New)
Challenge 4: Game Theory
Challenge 5: Make Me Happy
Challenge 6: Buying and Selling Game (Original Version)
Challenge 7: Pick-a-door (New)

Each challenge could reward winners with as much as 60 Hive. The value of the prize will depend on the level of participation. For each new participant, the prize will increase by 5 Hive. This will continue until 60 Hive is reached (12 participants). The first 12 participants will also receive a 50% upvote from this account. In addition to the prize money, the top few participants will be given points. These points will be used to determine the overall challenge series winner. This winner may receive as much as 80 Hive. The value of the prize will equal the sum of the number of participants across all challenges. This will continue until 80 Hive is reached.

For more information on the challenge series and the upcoming challenges, I recommend that you read my post Spectrumecons Seven-Week Challenge 2022 (Coming Soon) and watch my video.

Welcome to Challenge 6 – The ‘Buying and Selling’ Game.

The Buying and Selling Game (Original Version) and the business version of the game are regular contests that I run on a monthly basis. Below are links to recent contests and their results posts and videos. Last on the list is original Buying and Selling Game from the 2018 Challenge Series. This is the only challenge to appear in all three challenge series.

The ‘Buying and Selling’ Game is also explained in the following original video:

How to play?

The ‘Buying and Selling’ Game involves three simple steps.

Choose one or more of six goods to buy.
Choose the city or town where you will be buying these goods.
Choose the city or town where you will be selling these goods.

All the information you need to know to play the game is provided in the question; i.e. no external research is required as all prices are hypothetical and locations are fictitious.

All entries must be made in the comments section of this post.

Each account is only permitted one entry.

Objectives of the game

The objective of the game is to make the highest profit from the sale of all the goods you have bought. If two participants make the exact same profit, the participant that entered first wins.

Game assumptions

All goods of the same type are identical; for example, Good A bought in Town X is the same as Good A bought in Town Y.

There are zero transaction and transport costs.

All cities and towns use the same currency.

What information is provided?

All the cities and towns are provided.
All the goods that can be bought in the game are provided.
All the buying prices of the goods are provided.
None of the selling prices of the goods are provided. Instead, a possible range of prices is provided. This range is represented by maximum, minimum, and mode prices (i.e. most frequently occurring price). See diagram below.

Selling Price Distribution

Note: Triangular Distribution

How are the results of the game determined?

A Microsoft Excel Model is used to determine the selling prices of each good in each city or town. These prices will be used to calculate the profits made by each participant. In the results post, the calculation of the selling price will be presented in a video. To learn more about how the results are calculated and presented, click on one of the results post links provided earlier in the post.

Contest Prizes

The total prize for this challenge could reach as high as 60 Hive. The number of participants determines the value of the prize. For every entry, the prize is increased by 5 Hive until a value of 60 Hive is reached. The winner will receive 2/3 of the prize and second place will receive 1/3. For every entry, the prize is increased by 5 Hive until a value of 60 Hive is reached. The winner will receive 2/3 of the prize and second place will receive 1/3. The first 12 entries will be given upvotes.

The most profitable buying and selling price combination is also calculated. If the winner adopts this strategy and the value of the prize is below 60 Hive, he or she will receive an additional 5 Hive. The winner of this challenge will be given 20 points, second place 10 points, and third place 5 points. These points will be tallied at the end of the challenge series to determine the overall winner.

Let the challenge begin

Participants have been allocated a budget of $15,000 to buy 1 or more desserts from any of the 5 towns or cities. These towns and cities are as follows:

Sweet City
Icing Town
Cherry Top
Syrup Hill
Cream Falls

See map below:

Map of Towns and Cities

All types of desserts listed in the challenge are available in all 5 towns and cities. The available desserts are as follows:

Ice Cream
Cakes
Pancakes
Mousse
Fruit Bowl
Pudding

Table 1 contains the prices of each type of dessert for each town and city.

Table 1: Prices of desserts for each town and city

Note: desserts can only be bought as whole pieces. For example, a participant could only buy 5,172 Cakes from Cream Falls, as there is insufficient money to buy the 5,173^rd Cake.

After buying the desserts, the participant must then sell all the desserts he or she has bought in just one of the towns or cities named in the question. Remember, the selling prices are revealed in the results post. These prices are determined using the information provided in Tables 2, 3, and 4.

Table 2: Minimum, maximum, and mode (Sweet City & Icing Town)

Table 3: Minimum, maximum, and mode (Cherry Top & Syrup Hill)

Table 4: Minimum, maximum, and mode (Cream Falls)

Entry format

For this challenge, I expect to see entries made in the following format:

Buying
Name of Place:
Goods purchased:
Number purchased:
Amount spent on goods:

Selling
Name of Place:

Example of entry

Buying
Name of Place: Cherry Top
Goods purchased: Fruit Bowl
Number purchased: 7,500
Amount spent on goods: $15,000

Selling
Name of Place: Icing Town

The closing date and time for this contest is 6PM coordinated universal time (UTC) 11/09/2022. Responses after this time will not be accepted. The answers will be provided in the results post along with the video containing the generation of selling prices using the model.

I hope everyone has fun and enjoys this sixth challenge. I look forward to your participation in the final challenge. If you have any questions, feel free to ask in the comments section.

If you want to read any of my other posts, you can click on the links below. These links will lead you to posts containing my collection of works. These 'Collection of Works' posts have been updated to contain links to the Hive versions of my posts.

Hive: Future of Social Media

Spectrumecons on the Hive blockchain

Sort:

Trending

[-]

alexkidding (51) 2 years ago

Buying
Name of Place: Cherry Top
Goods purchased: Pudding
Number purchased: 16,000
Amount spent on goods: $15,000

$2.17

1 vote

seki1 (67) 2 years ago

Name of Place: Cream Falls
Goods Purchased: Pancakes and Mouse
Number Purchased: 2,344 and 2,586
Amount spend on goods: $15,000

Selling
Name of Place: Cherry Top

$2.16

temileke (63) 2 years ago

Buying
Name of Place: Cherry Top
Goods purchased: Pudding
Number purchased: 15,000
Amount spent on goods: $15,000

pasiflora (45) 2 years ago

Hello everyone!! i hope i have done the task well...good luck

Buying
Name of Place: CREAM FALLS
Goods purchased: PANCAKES
Number purchased: 4687
Amount spent on goods: $14.998,4

Selling
Name of Place: SYRUP HILL

adeyemijan (55) 2 years ago

Buying
Name of Place: Cream Falls
Goods purchased: Pancakes
Number purchased: 4,687
Amount spent on goods: $14,998.40

$2.15

emeka4 (72) 2 years ago

Buying
Name of place: Sweet City
Good purchased: Ice cream
Number purchased: 18,750
Amount spent on goods: $15,000

Selling
Name of place: Cherry Top

fatherfaith (71) 2 years ago

micheal87 (67) 2 years ago

Buying
Name of place: Cherry Top
Good purchased: Ice cream
Number purchased: 16,660
Amount spent on goods: $14,994

Selling
Name of place: Icing Town

pana1 (54) 2 years ago

Selling
Name of Place: Syrup Hill

crrdlx (66) 2 years ago

Selling
Name of Place: Cream Falls

notak (69) 2 years ago

Buying
Name of place:cream falls
Goods purchased: pancakes
Number purchased: 4545
Amount spent on goods:14998.50

Selling
Name of place: icing town

$2.07

homesteadlt (68) 2 years ago

Buying
Name of place: Cherry Top
Good purchased: Pudding
Number purchased: 15000
Amount spent on goods: $15,000

Selling
Name of place: Sweet City

$2.05

@spectrumecons must you buy only one type of good?
Like coukd i buy both Ice cream and Cake?

$0.21

spectrumecons (73)Chief Economist 2 years ago

You can buy more than one type of good (e.g. ice cream and cakes) but you must sell all your goods in just one town or city.

$0.00

I see

poshtoken (82) 2 years ago

_{The rewards earned on this comment will go directly to the people sharing the post on Twitter as long as they are registered with @poshtoken. Sign up at https://hiveposh.com.}

axel-mccornstack (62) 2 years ago

Buying
Name of Place: Syrup Hill
Goods purchased: 10 710 Fruit Bowls + 2 cakes
Number purchased: 10710 and 2
Amount spent on goods: $15,000

Selling
Name of Place: Sweet City

adedayoolumide (70) 2 years ago

Buying
Name of Place: Icing town
Goods purchased: cake
Number purchased: 7,142
Amount spent on goods: $14,998.2

Selling
Name of Place: Syrup hill

adeyemi12 (60) 2 years ago

Name of Place: Cherry Top
Goods purchased: Pudding
Number purchased: 15,000
Amount spent on goods: $15,000

maro1 (60) 2 years ago

Buying
Name of Place: Cream Falls
Goods purchased: Pancakes
Number purchased: 4,687
Amount spent on goods: $14,998.4