Law of supply and demand:

You have been hired as an economic consultant to a firm that is trying figure out how to set their prices.

1.Identify the firm's major trouble areas and misconceptions.

2.using economic terms, explain the problems or the flawed logic in the situation

3.Evaluate the flawed decision or action and offer a strategic plan

4.Demonstrate a graph and change in manipulation( increase, decrease, change price.)

FIRM 5 Dear Economist, I probably should have written sooner, but I've been too busy eating some of my delicious new ice cream OrangeMintChocolateJellyBean. It's going to be HUGE! Anyway, I'm writing you because I think my Ice Cream Shop is in in trouble. Normally, I sell around 100 gallons of ice cream a month at about $5 a gallon. There was one summer when, for the same price, I sold 200 gallons for a while - not sure why that happened though. What do you think? What concerns me now is that the price of freezers - obviously where people put their ice cream - has tripled in my neighborhood. People are combining freezers with their neighbors and freezer space is at a premium. My thought was to double the price of my ice cream so that when people bought it, they'd want to take more care of it. To make matters worse, my top ice cream maker left to join Ben and Jerry's and I have a bunch of novices who don't produce as much! What is likely to happen with both of these things going on at the same time? Is there any hope? Creamily yours, Neo Politan