Imagine a shoe store has a large number of shoes in its warehouse. the store owner believes the economy has peaked and a recession is coming soon. if this is true, what should the store owner do?

The owner could advertise a sale and try to sell as many pairs of shoes as possible before the recession comes and prices fall even more. Then, when the recession hits a trough, the owner could use the money from this sale to expand the warehouse while costs are at their lowest point. The owner must be sure to plan for falling demand.

Explanation:

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