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What do you do to achieve a lower order quantity (Q)

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Final answer:

To achieve a lower Q*, one must aim for a new equilibrium (E1) with a lower quantity and price than the original equilibrium (Eo). This can be done by increasing supply or decreasing demand of the product.

Step-by-step explanation:

To achieve a lower order quantity (Q*), you need to compare the new equilibrium price and quantity to the original equilibrium price. If the new equilibrium, which we'll refer to as E1, occurs at a lower quantity and a lower price compared to the original equilibrium (Eo), then the lower Q* has been achieved. Lowering the equilibrium price can be done through a variety of methods, such as decreasing the demand or increasing the supply for a product or service.

Increasing the supply could involve improving production efficiency or sourcing more materials. Decreasing demand might involve adjusting marketing strategies or changing the product mix. The effect of a new equilibrium price slightly above the original can have a lesser impact on quantity, which is not as substantial as setting a new, lower equilibrium price.

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