Scenario:

You did so well building the ice cream business that you were able to sell your company and retire early. After learning to scuba dive, getting a pilot's license, and traveling around the world you decided to move back to sunny South Florida and look for something constructive to occupy your time. That's when you came up with the idea to try a new business venture: Food Trucks! Access the link below to play the Food Truck Simulation. In this simulation, you'll need to try different pricing strategies to see what works for your business. Run the simulation as instructed first. After you achieve the results stated in the sim instructions, run it two more times applying first a skimming pricing strategy and then a penetration pricing strategy.

Simulation: Demand for Food Trucks https://courses.lumenlearning.com/suny-microeconomics/chapter/simulation-demand-for-food-trucks/

Graded Activity

1. 1. Draw a demand curve graph that illustrates your skimming pricing simulation.
   2. Draw a demand curve graph that illustrates your penetration pricing simulation.
   3. In one complete paragraph, briefly describe which pricing strategy you would choose and explain why.