# Example 891 — The price rose ten percent and the revenue fell `the_price_rose_ten_percent_and_the_revenue_fell.eml` - A seller raises its price by ten percent to raise revenue, the increase is applied exactly, and the revenue afterwards is measured exactly. What revenue is a product of is computed below. ## EML ```eml # Self-authored for the EML case corpus (no external origin). A seller raises its # price by ten percent to raise revenue, the increase is applied exactly, and the # revenue afterwards is measured exactly. What revenue is a product of is # computed below. # # The move is careful. The new price is exactly ten percent above the old; every # sale is at the new price; the revenue before and after is real; and the intent # is exactly 'more revenue'. # # Revenue is price times quantity, and quantity fell fifteen percent when price # rose ten - the demand was elastic - so the exact ten-percent rise produced an # exact revenue fall. 10 => price_before 1000 => units_before 11 => price_after 850 => units_after 9 => price_if_cut 1150 => units_if_cut price_before * units_before => revenue_before price_after * units_after => revenue_after revenue_after - revenue_before => revenue_change int((price_after - price_before) * 10000 / price_before) => price_rise_per_myriad int((units_before - units_after) * 10000 / units_before) => units_fall_per_myriad int(units_fall_per_myriad * 100 / price_rise_per_myriad) => elasticity_hundredths price_if_cut * units_if_cut => revenue_if_cut revenue_if_cut - revenue_before => revenue_change_if_cut "price before / after : " + str(price_before) + " / " + str(price_after) + ", up " + str(price_rise_per_myriad) + " per ten thousand" ^0 "units before / after : " + str(units_before) + " / " + str(units_after) + ", down " + str(units_fall_per_myriad) + " per ten thousand" ^0 "" ^0 "revenue before : " + str(revenue_before) ^0 "revenue after the rise : " + str(revenue_after) ^0 "revenue change : " + str(revenue_change) ^0 "elasticity : " + str(elasticity_hundredths) + " hundredths, above one" ^0 "" ^0 "had the price been cut to " + str(price_if_cut) + " : " + str(units_if_cut) + " units, revenue " + str(revenue_if_cut) + ", change " + str(revenue_change_if_cut) ^0 "" ^0 # ---- what the move verified ---- "the price rise" ^0 " new price : exactly ten percent above the old" ^0 " sales : every one at the new price" ^0 " revenue : real before and after" ^0 " intent : more revenue" ^0 " sales at the old price after the rise : 0" ^0 " verdict : THE PRICE WENT UP TEN PERCENT, EXACTLY" ^0 "" ^0 " applying the rise exactly to every sale is the part done" ^0 " right here, and it is why the price side of the move is" ^0 " precisely what was intended" ^0 "" ^0 # ---- what revenue is a product of ---- "price times quantity" ^0 " what revenue is : price times units, not price" ^0 " what the rise did to units : " + str(units_before) + " to " + str(units_after) + ", down " + str(units_fall_per_myriad) + " per" ^0 " ten thousand" ^0 " the ratio of the two moves : " + str(elasticity_hundredths) + " hundredths, so units fell" ^0 " faster than price rose" ^0 " so revenue : " + str(revenue_before) + " to " + str(revenue_after) ^0 " the direction that would have raised it : a cut, to " + str(revenue_if_cut) ^0 "" ^0 # ---- what the seller got ---- "the quarter" ^0 " revenue change from the rise : " + str(revenue_change) ^0 " revenue change a cut would have made : " + str(revenue_change_if_cut) ^0 " is the price rise misapplied : no; it is exactly ten" ^0 " percent" ^0 " is a higher price more revenue : only when demand moves" ^0 " less than price, and here it moved more" ^0 "" ^0 # ---- null control ---- # The same seller estimating the elasticity first (a small test in each # direction) and moving price the way that raises price times quantity. revenue_after - revenue_before => nc_revenue_change_moving_price_up 350 => nc_revenue_change_moving_price_down 1 => nc_direction_chosen_by_elasticity_is_down "null control - measure the elasticity, then choose the direction" ^0 " revenue change, price up : " + str(nc_revenue_change_moving_price_up) ^0 " revenue change, price down : " + str(nc_revenue_change_moving_price_down) ^0 " direction chosen by the elasticity is down : " + str(nc_direction_chosen_by_elasticity_is_down) ^0 " no customer and no cost changed; price stopped being" ^0 " moved as if quantity would stand still" ^0 "" ^0 # ---- the rule ---- "what an exact ten-percent price rise guarantees" ^0 " every sale brings in ten percent more than before :" ^0 " exactly, the rise applied to every sale" ^0 " revenue rises : not addressed; units fell " + str(units_fall_per_myriad) + " per ten" ^0 " thousand against a " + str(price_rise_per_myriad) + " rise in price, so price times units" ^0 " fell from " + str(revenue_before) + " to " + str(revenue_after) ^0 "" ^0 "a revenue is a product, and moving one factor moves the other; when the" ^0 "quantity answers by more than the price asked, the exact rise on every sale is" ^0 "an exact fall on the total, and the lever was pushed the wrong way" ^0 "" ^0 "It raises the price by exactly ten percent on every sale - the price side is" ^0 "precise. But units fell " + str(units_fall_per_myriad) + " per ten thousand, an elasticity of " + str(elasticity_hundredths) + " hundredths, so" ^0 "revenue went from " + str(revenue_before) + " to " + str(revenue_after) + ", " + str(revenue_change) + ", where a cut to " + str(price_if_cut) + " would have made" ^0 "" + str(revenue_change_if_cut) + ", until the elasticity was measured before the lever was pulled." ^0 ``` ## Python (deterministic transpilation) ```python price_before = 10 units_before = 1000 price_after = 11 units_after = 850 price_if_cut = 9 units_if_cut = 1150 revenue_before = price_before * units_before revenue_after = price_after * units_after revenue_change = revenue_after - revenue_before price_rise_per_myriad = int((price_after - price_before) * 10000 / price_before) units_fall_per_myriad = int((units_before - units_after) * 10000 / units_before) elasticity_hundredths = int(units_fall_per_myriad * 100 / price_rise_per_myriad) revenue_if_cut = price_if_cut * units_if_cut revenue_change_if_cut = revenue_if_cut - revenue_before print("price before / after : " + str(price_before) + " / " + str(price_after) + ", up " + str(price_rise_per_myriad) + " per ten thousand") print("units before / after : " + str(units_before) + " / " + str(units_after) + ", down " + str(units_fall_per_myriad) + " per ten thousand") print("") print("revenue before : " + str(revenue_before)) print("revenue after the rise : " + str(revenue_after)) print("revenue change : " + str(revenue_change)) print("elasticity : " + str(elasticity_hundredths) + " hundredths, above one") print("") print("had the price been cut to " + str(price_if_cut) + " : " + str(units_if_cut) + " units, revenue " + str(revenue_if_cut) + ", change " + str(revenue_change_if_cut)) print("") print("the price rise") print(" new price : exactly ten percent above the old") print(" sales : every one at the new price") print(" revenue : real before and after") print(" intent : more revenue") print(" sales at the old price after the rise : 0") print(" verdict : THE PRICE WENT UP TEN PERCENT, EXACTLY") print("") print(" applying the rise exactly to every sale is the part done") print(" right here, and it is why the price side of the move is") print(" precisely what was intended") print("") print("price times quantity") print(" what revenue is : price times units, not price") print(" what the rise did to units : " + str(units_before) + " to " + str(units_after) + ", down " + str(units_fall_per_myriad) + " per") print(" ten thousand") print(" the ratio of the two moves : " + str(elasticity_hundredths) + " hundredths, so units fell") print(" faster than price rose") print(" so revenue : " + str(revenue_before) + " to " + str(revenue_after)) print(" the direction that would have raised it : a cut, to " + str(revenue_if_cut)) print("") print("the quarter") print(" revenue change from the rise : " + str(revenue_change)) print(" revenue change a cut would have made : " + str(revenue_change_if_cut)) print(" is the price rise misapplied : no; it is exactly ten") print(" percent") print(" is a higher price more revenue : only when demand moves") print(" less than price, and here it moved more") print("") nc_revenue_change_moving_price_up = revenue_after - revenue_before nc_revenue_change_moving_price_down = 350 nc_direction_chosen_by_elasticity_is_down = 1 print("null control - measure the elasticity, then choose the direction") print(" revenue change, price up : " + str(nc_revenue_change_moving_price_up)) print(" revenue change, price down : " + str(nc_revenue_change_moving_price_down)) print(" direction chosen by the elasticity is down : " + str(nc_direction_chosen_by_elasticity_is_down)) print(" no customer and no cost changed; price stopped being") print(" moved as if quantity would stand still") print("") print("what an exact ten-percent price rise guarantees") print(" every sale brings in ten percent more than before :") print(" exactly, the rise applied to every sale") print(" revenue rises : not addressed; units fell " + str(units_fall_per_myriad) + " per ten") print(" thousand against a " + str(price_rise_per_myriad) + " rise in price, so price times units") print(" fell from " + str(revenue_before) + " to " + str(revenue_after)) print("") print("a revenue is a product, and moving one factor moves the other; when the") print("quantity answers by more than the price asked, the exact rise on every sale is") print("an exact fall on the total, and the lever was pushed the wrong way") print("") print("It raises the price by exactly ten percent on every sale - the price side is") print("precise. But units fell " + str(units_fall_per_myriad) + " per ten thousand, an elasticity of " + str(elasticity_hundredths) + " hundredths, so") print("revenue went from " + str(revenue_before) + " to " + str(revenue_after) + ", " + str(revenue_change) + ", where a cut to " + str(price_if_cut) + " would have made") print("" + str(revenue_change_if_cut) + ", until the elasticity was measured before the lever was pulled.") ``` ## stdout (executed) ```text price before / after : 10 / 11, up 1000 per ten thousand units before / after : 1000 / 850, down 1500 per ten thousand revenue before : 10000 revenue after the rise : 9350 revenue change : -650 elasticity : 150 hundredths, above one had the price been cut to 9 : 1150 units, revenue 10350, change 350 the price rise new price : exactly ten percent above the old sales : every one at the new price revenue : real before and after intent : more revenue sales at the old price after the rise : 0 verdict : THE PRICE WENT UP TEN PERCENT, EXACTLY applying the rise exactly to every sale is the part done right here, and it is why the price side of the move is precisely what was intended price times quantity what revenue is : price times units, not price what the rise did to units : 1000 to 850, down 1500 per ten thousand the ratio of the two moves : 150 hundredths, so units fell faster than price rose so revenue : 10000 to 9350 the direction that would have raised it : a cut, to 10350 the quarter revenue change from the rise : -650 revenue change a cut would have made : 350 is the price rise misapplied : no; it is exactly ten percent is a higher price more revenue : only when demand moves less than price, and here it moved more null control - measure the elasticity, then choose the direction revenue change, price up : -650 revenue change, price down : 350 direction chosen by the elasticity is down : 1 no customer and no cost changed; price stopped being moved as if quantity would stand still what an exact ten-percent price rise guarantees every sale brings in ten percent more than before : exactly, the rise applied to every sale revenue rises : not addressed; units fell 1500 per ten thousand against a 1000 rise in price, so price times units fell from 10000 to 9350 a revenue is a product, and moving one factor moves the other; when the quantity answers by more than the price asked, the exact rise on every sale is an exact fall on the total, and the lever was pushed the wrong way It raises the price by exactly ten percent on every sale - the price side is precise. But units fell 1500 per ten thousand, an elasticity of 150 hundredths, so revenue went from 10000 to 9350, -650, where a cut to 9 would have made 350, until the elasticity was measured before the lever was pulled. ``` ## Round-trip `ok: true` — round-trip fixpoint reached (python1 == python2) ## Trace event types eml:run:start · eml:assign · eml:output · eml:run:done