4.Edward Entra Manure has developed a new product that he is convinced will really do well in the marketplaceand make him rich.While there will be a few competitorsconsidering that there will be some goods out there that are somewhat similar, but (in his opinion) nowhere near as good and desirable as his producthe is confident his new product will fare extremely well, meaning that it will generate strong sales and high profits for him.

As he introduces his product to the market Joe surveys what his "competitors" are charging for their product, but remember, he thinks his is much better than the others are and will therefore find greater acceptance in the marketplace.Since there is no great graph in the sky that will show him where two lines cross (as we find in textbooks and on lecture chalk boards), (a)how will Edward know whether he has priced his product too high, too low, or just right?Also (b) explain the adjustment process if it turns out that he has initially priced his product too high or too low.