-
they actually ship based on demand.
-
Depends on--I don't want to be too rigorous about that
-
because you could imagine the other way around,
-
but if you talk to managers
-
this sounds more realistic,
-
at least for retail goods like Coke and Pepsi.
-
So we know how prices are set,
-
they're set by the firms,
-
so the next question is where do the quantities come from?
-
so how do--where do the quantities from?
-
And they're going to come from demand.
-
And let me use a big Q(P) to be the total quantity produced--