OpenStudy (anonymous):
Help, URGENT
OpenStudy (anonymous):
You are running a firm that manufactures and sells jeans and your personal goal is to earn as much profit as possible. In January, which happened to be your first month of operations, you were able to sell 3,589 pairs of jeans at the price of 9,100 tenge. You know that your business is facing a downward-sloping linear demand curve, but you do not have any information about the intercept and the slope of this demand curve. Undeterred, you have decided to lower the January price to 8,000 tenge and see what happens. Unsurprisingly, after the price went down, your customers got very excited and purchased 4,000 pairs of jeans from you in February. Analyze this outcome, using the tools we covered in class and tell me in what direction you will push the price in March. Explain your thinking.
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