Supply Demand Modeling

Question

I thought I would ask the SO community on helping me with a project that I am currently working on. I need to model the price for a widget in a market situation. The price for t

Answer 1

Unfortunately I do not know of any libraries, but perhaps you can tap into Excel's statistics functions.

My opinion follows.

This is why economics is so boring, everything is supply/demand.

Something along the lines of the following should work as a start:

ListPrice = (Cost + Profit) * (demand/supply * economic-factor)

where economic-factor is some determined constant.

If you have some historical data, eg daily supply/demand ratio's you could factor it in, perhaps using some time-based scale.