How do I simulate a demand shock?

Open this page and use the live Pricing Strategy tool below — set your inputs and the simulation runs instantly in your browser using real numerics. No install, no account needed.

Yes. The simulation runs free in your browser. A one-time unlock or a Pro plan adds advanced parameters, saved presets, data import, and clean exports.

Can I use my own numbers?

Absolutely — every input is adjustable, and with data import you can drive a demand shock from your own measurements.

Use case · powered by Pricing Strategy

Pricing Strategy for a demand shock

Simulate a demand shock live in your browser. This runs the real Pricing Strategy solver — adjust the inputs, watch it respond instantly, and export the result. No install, no account.

For:Students Researchers Educators Engineers Hobbyists & Makers K-12 Students First Responders

Elasticity

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Price Elasticity of DemandLive

how sensitive is quantity?

Controls

Presets

Price

Elasticity measures how much quantity demanded responds to price. Where demand is elastic (|E| > 1), a price cut raises total revenue; where it is inelastic, a price cut lowers revenue. On a straight-line demand curve the top half is elastic, the bottom half inelastic, and revenue peaks exactly at the midpoint where elasticity equals one.

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Data Inspector

Quantity50.0

Elasticity-1.00

Typeunit

Revenue$2500

Governing equation

E_{d} = \frac{d Q}{d P} \cdot \frac{P}{Q} = - \frac{1}{b} \cdot \frac{50}{50.0} = - 1.00

Reading this result: You are at the unit-elastic midpoint: revenue is at its maximum, and small price moves in either direction leave it roughly unchanged.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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Monopoly

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Monopoly PricingLive

market power & deadweight loss

Controls

Presets

Marginal cost

A monopolist maximizes profit where marginal revenue equals marginal cost — then charges the price the demand curve allows. Because MR lies below demand, the monopoly produces less and charges more than a competitive market (where price equals MC). The red triangle is the deadweight loss: mutually beneficial trades that never happen.

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Data Inspector

Monopoly price$65.0

Monopoly qty35.0

Competitive qty70.0

Deadweight loss613

Profit1225

Governing equation

M R = 100 - 2 Q = M C = 30 \Rightarrow Q_{m} = 35.0, P_{m} = $65.0

Reading this result: At MC = $30, the monopolist makes 35 units and charges $65 — a $35 markup over cost. That output is exactly half the competitive 70, and the shaded triangle (613) is the welfare lost to that restraint.

Runs locally in your browser — free forever. Scale to the cloud when reality gets heavy.

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About this simulation

The full Pricing Strategy tool models a demand shock with the same numerics engineers and scientists use — running entirely client-side. Change any parameter and the result updates in real time, so you can build intuition, check a design, or teach the concept without spreadsheets or installs.

More you can do with Pricing Strategy

Pricing Strategy for a supply-demand market Pricing Strategy for a monopoly Pricing Strategy for an auction Pricing Strategy for a tax policy Pricing Strategy for a trade tariff Pricing Strategy for an inflation model Pricing Strategy for a labor market Pricing Strategy for a game-theory standoff

Other ways to simulate a demand shock

Supply & Demand for a demand shock Price Elasticity for a demand shock Monopoly Pricing for a demand shock Cobb-Douglas for a demand shock Lorenz & Gini for a demand shock Laffer Curve for a demand shock

Frequently asked questions

How do I simulate a demand shock?: Open this page and use the live Pricing Strategy tool below — set your inputs and the simulation runs instantly in your browser using real numerics. No install, no account needed.
Is it free?: Yes. The simulation runs free in your browser. A one-time unlock or a Pro plan adds advanced parameters, saved presets, data import, and clean exports.
Can I use my own numbers?: Absolutely — every input is adjustable, and with data import you can drive a demand shock from your own measurements.