I. Suppose that the Wall Street Journal reports that the prices of PC components are expected to fall by 5-8 percent over the next six months. Apply demand and supply analysis to evaluate the following two scenarios.
Scenario 1: You manage a small firm that manufactures PCs. What are the implications for your company? How would you prepare (think about contracts/suppliers, inventories, human resources, marketing)?
Scenario 2: You manage a small software company. How would you prepare (again think about contracts/suppliers, inventories, human resources, marketing)?
II. Refer to the required reading assignment (articles on the increase in Montgomery County’s minimum wage) and answer the following questions.
Who would beneﬁt and who would be worse oﬀ if Montgomery County implements a minimum wage of $15/hour?
The Dunkin’ Donuts Franchisee claims that 130 jobs would be lost as a result of an increase in the minimum wage. Explain why or why not this is a plausible consequence. How would you conduct a study of the issue?
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