Suppose that the Samsung Galaxy smartphone suddenly becomes more popular, causing the demand for iPhones at the AT&T store in Santa Cruz to drop from 800 per year to 392 per year. If the annual carrying cost (C) of holding an iPhone in inventory remains at $40 per iPhone and the fixed cost of an order (CFC) remains at $10 per order

a. How does the decrease in demand affect the economic order quantity?

b. How does the decrease in demand affect the quantity held in inventory?