7. Taco Alarm just added a new item to their menu: Spaghetti Tacos. The new item will only
be available for a month in order to test consumer response. They only produced 10,000 tacos
nationwide and each taco sells for $3.
About a week into the test they realize everyone loves it
and the tacos are selling very quickly.
• How does supply currently compare with demand for the month?
As it is right now, Taco Alarm is quickly going through their supply of spaghetti
tacos. How should Taco Alarm change their price to maximize profits?