You have been hired as an economic consultant to a firm that is trying figure out how to set their prices. Unfortunately, they are very confused on supply and demand issues.

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 4 Dear Economist. I work for a rm that makes Halloween Costumes. Every year we run into a problem and we're hoping you can help. Around late Sqatember, people start buying a whole bunch of our products. Seeing this, we start producing like crazy and charging more money. Through October this works well and we make money and sell most of what we make. Then. all of a sudden. our sales (hop off like a blind man walking off a cliff. Why does that happen? Secondly. we think we should be able to get the same price for our costumes year round as we do during Halloween season. However. during off seasons. only a few people seem to be willing to buy at the normal prices. What's up with that? This year. we have heard that the govenunent is moving to increase taxes on costume makers. How will that affect us? Currently. we only have a few costumes ready to go and we are trying to avoid the normal problems. What should we do? Spookily yours. Hal O'Ween