Business question

If we adjust price or underlying cost, what happens to margin under a few plausible demand responses?

What we would decide with this

Use the scenario table to stress-test gross margin before committing to pricing or procurement changes; pair with real elasticity estimates when available (here: illustrative constants only).

Synthetic data

A baseline price, unit cost, and “base” volume are fixed; scenarios vary price change and elasticity (constant elasticity of demand). Seed: 42 for any stochastic piece; see demos/margin-whatif/data/generate.py.

Approach

For each scenario: (Q = Q_0 \cdot (P/P_0)^{\epsilon}), revenue (P \cdot Q), margin ((P - c) \cdot Q). Plot margin by scenario index and export a CSV summary.

Key outputs

Reproduce

cd demos/margin-whatif
python3 data/generate.py
python3 src/run.py

Dependencies: demos/requirements.txt.