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Suppose in January, ski sellers anticipate an exceptionally warm spring. We can expect:

User Roshith
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Final answer:

Ski sellers anticipating an exceptionally warm spring would likely reduce inventory and lower prices to encourage sales before the end of the winter season, as demand for skis is expected to decrease.

Step-by-step explanation:

If ski sellers anticipate an exceptionally warm spring in January, we can expect that this will affect their inventory and pricing strategies. Given that a warm spring would likely decrease the demand for skis, sellers might choose to reduce inventory ahead of time to avoid being left with unsold merchandise. This could include ordering fewer skis or offering promotions to sell current stock. Additionally, the anticipation of a warm season could lead to sellers lowering prices to encourage sales before the end of the ski season. This strategy aligns with basic economic principles, where an expected drop in demand can lead sellers to decrease supply or reduce prices to maintain equilibrium in the market.

In contrast, an exceptionally cold winter, like the one described in option (b), tends to increase the demand for winter products, such as skis, requiring a different inventory approach. In this scenario, sellers might stock up on more inventory and could possibly increase prices due to higher demand. The anticipation of seasonal changes is crucial for businesses like ski retailers to manage their supply chain and pricing effectively.

User Erensezener
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