Hello I am really stuck on this question; I truly need help with this one please

Question

Hello I am really stuck on this question; I truly need help with this one please and thank you

The table below shows two demand schedules for a given style of men’s shoe—that is, how many pairs per month will be demanded at various prices at a men’s clothing store in Seattle called Stromnord.
  

Suppose that Stromnord has exactly 65 pairs of this style of shoe in inventory at the start of the month of July and will not receive any more pairs of this style until at least August 1.

Instructions: Enter your answers as whole numbers.

a. If demand is D1, what is the lowest price that Stromnord can charge so that it will not run out of this model of shoe in the month of July?

1. What if demand is D2?

b. If the price of shoes is set at $75 for both July and August and demand will be D2 in July and D1 in August, how many pairs of shoes should Stromnord order if it wants to end the month of August with exactly zero pairs of shoes in its inventory?

2. What if the price is set at $55 for both months?

Explanation / Answer

a) If demand is D1, Stromnord can charge $70, so that it will not run out of this model of shoe in the month of July. If it charges $70, the quantity demanded would be 60 and there are 65 pairs of shoes of this style in the inventory and thus it will not run out of stock.

1.if Demand is D2,it can charge $55, as the quantity demanded is 27 at this price and thus it does not run out of stock.

b) If the price of shoes is set at $75 for both July and August and demand will be D2 in July and D1 in August,so the overall demand would be:

July : 13

August : 53

Overall Demand = 13 + 53 = 66

So Stromnord should order 66 pairs of shoes, so that by the end of August, there will be exactly zero pairs of shoes in the inventory.

2.  If the price is set at $55 for both months, overall demand would be :

July : 27

August : 87

Overall Demand : 27 +87 = 114

So Stromnord should order 114 pairs of shoes if the price is set at $55, so that by the end of August, there will be exactly zero pairs of shoes in the inventory.

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