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Pura Vida, a beach-front shop that sells handmade bracelets from Costa Rica, has consistently been selling out of its inventory. You get hired as an
Pura Vida, a beach-front shop that sells handmade bracelets from Costa Rica, has consistently been selling out of its inventory. You get hired as an intern and are asked to review their data. You notice that customer demand is far outpacing what the company supplies at the current price point. According to the Invisible Hand concept we discussed in class, what should Pura Vida do? Question 9 options: Decrease the price and supply fewer bracelets. Pura Vida will be able to sell out of the bracelets very quickly and can focus its energy on other products in the store. Increase the price and supply more bracelets. Right now, there's a "shortage" in the market; Pura Vida is missing an opportunity to sell more bracelets at a higher price point that customers are willing to pay. Decrease the price and supply more bracelets. This will keep customers coming back and super happy to be paying such low prices for all the bracelets. Increase the price and supply fewer bracelets. By increasing the price exponentially, the bracelets become a luxury so that only a few customers can actually purchase them. Don't do anything. Who cares if the company is selling out? If
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