The potential amount of shoes that you can sell per year is 6 000 pairs, regardless of whether you change the prices of the shoes or not. If you adjust your price downwards or upwards by 1%, the consumers tend to buy 1.5% either more or less. Your supply curve indicates that you should always keep 500 units in stock and that a 1% change in the price of a pair of shoes tends to increase or reduce the sales of a pair of shoes by 0.5%. Construct your shop's demand and supply functions for running shoes. Calculate the price of a pair of shoes as well as the expected annual sales. Determine the elasticity of demand of your shoes.

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The potential amount of shoes that you can sell per year is 6 000 pairs, regardless of whether you
change the prices of the shoes or not. If you adjust your price downwards or upwards by 1%, the
consumers tend to buy 1.5% either more or less.
Your supply curve indicates that you should always keep 500 units in stock and that a 1% change in
the price of a pair of shoes tends to increase or reduce the sales of a pair of shoes by 0.5%.
Construct your shop's demand and supply functions for running shoes.
Calculate the price of a pair of shoes as well as the expected annual sales.
Determine the elasticity of demand of your shoes.

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