Untitled

# Data for the lemonade stand example
quantity_lemonade = np.array([1, 2, 3])  # Quantity sold
price_lemonade = np.array([2, 1.5, 1])  # Price for each quantity
total_revenue_lemonade = price_lemonade * quantity_lemonade  # Total revenue for each quantity

# Marginal Revenue Calculation
marginal_revenue_lemonade = np.array([total_revenue_lemonade[0], 
                                       total_revenue_lemonade[1] - total_revenue_lemonade[0], 
                                       total_revenue_lemonade[2] - total_revenue_lemonade[1]])

# Plotting the graph
plt.figure(figsize=(10, 6))

# Demand Curve
plt.plot(quantity_lemonade, price_lemonade, label="Demand Curve (Price)", marker='o', color='blue')
# Marginal Revenue Curve
plt.plot(quantity_lemonade, [2, 1, 0], label="Marginal Revenue (MR)", marker='o', linestyle='--', color='green')

# Titles and labels
plt.title("Lemonade Stand: Demand and Marginal Revenue", fontsize=16)
plt.xlabel("Quantity of Lemonade Sold (Q)", fontsize=12)
plt.ylabel("Price / Marginal Revenue", fontsize=12)
plt.xticks(range(1, 5))  # Set x ticks for clarity
plt.yticks(np.arange(0, 3, 0.5))  # Set y ticks for clarity
plt.axhline(0, color='black', linewidth=0.8, linestyle='--')

# Adding a legend
plt.legend()
plt.grid(True)

# Show the plot
plt.show()