With a capital of $10 million, I have the option to buy good from any of these five cities, any sell in any of the five.
"These cities sell commodities at different prices. The participant must choose which commodities to buy. The participant is only allowed to buy from one city and sell to one city. The participants are given the prices of commodities on Day 1 but not on Day 7. The participants are given the possible distribution/range of prices for each commodity at each place (Town/City). On Day 7 day the participants are required to sell the commodities they bought. For the Day 7 prices"
With the $10million I will buy 2 commodity. Just to save guard the rule of purchase. Truly as an economist am only to really consider my gain but all as a trader I have to consider the odds of selling all my goods at a fast rate to make better profit in a fast lane.
I chose to buy my commodity from crunchy town. Am buying 2,700,000 bushel of corn with 365.27 tons of cocoa. This is my own market strategy, so that anybody looking for agriculture product van get from me on day 7. On day 7 am selling at meteor city which as the most gain for both of my commodity.
Selling corn at a min price of 4.5, mode price of 4.7 and Max price of 5.2, with an average of 4.8. selling cocoa at and average of 2718.3 with min price of 2500, mode price of 2755 and Max price of 2900. By using the average for calculations my total sale will be 12960000 on corn and 992924.4 on caoca. Total sale is $13952924. Gain from sale is $3952924. My gain might be small but am sure of selling all of my product couz am dealing with the immediate wants of human (food).
This is my entry for the week 3 of the 6week economics challenge by @spectrumecons.