You are an analyst working for the MeloMolybdenum mine. The mine has =tons of molybdenum ore in reserve, and must set extraction levels in each period (and , respectively). The mine initially anticipates that the price of molybdenum ore will be fixed at =dollars per ton in each period. The firm's marginal cost of extraction is the same in both periods: ()=+. Assume the firm uses an interest rate of =.when planning.

Suppose that at the beginning of period 1, after extraction in period 0 has already taken place, an unanticipated surge in demand occurs and the price per unit increases to =dollars per ton. The firm has an opportunity to adjust in response if it so chooses.

Question: Your boss asks fora recommendation on how to set production in period 1. Should the firm stick with the original plan for that it developed in period 0, based on the information it had at the time? Or should it change its plans for given the new price?

Justify your response using complete sentences, economic evidence, and (optionally) one or more economic graphs.