Price and demand

Q:  Does the simulation look at a company's price compared to other companies when it determines sales increases/decreases from one quarter to the next or does it look at the changes that the company makes from one quarter, with some industry wide trends factored in?

For example: If a company keeps its price at $10 while everyone else goes to $9, does the company with $10 get a hit (with lower sales) for a higher price relative to the other companies?  Or, does the company just not get the gain in unit sales that the other companies did for lowering their prices?

A:  Obviously I won't be able to give you the exact relationship between price and demand, but then you wouldn't have that relationship in the real business world, either.  Both factors that you mentioned are factors in determining the demand for your product:

1.  A company's price is compared to that of other companies.  Customers tend to choose the company with the lowest price, all other things being equal (they never are equal, though).

2.  When a company raises its price, some of its customers are likely to shop around for a lower-priced product, all other things being equal.