Questions and Case Study

QUESTIONS #1-7 (excluding elasticity questions)
1. p = price, q= people
    b) 30 people
    c) $100
    d) 16people
        16*$7 = $112 - revenue increase
2. I disagree with these statements. As both curves shift, we can observe the change in both quantity    and prices from the graph and determine the shift in market equilibrium.

4. a) higher prices would generally decrease the demand
    b) as clothing is a normal-good, the demand will increase with the increase of incom because now 
        consumers can afford more
     c) lower prices will also affect the demand curve becasue with the decrease of price, consumers w
         will buy more and also they could afford more of the product

5. a) eq price: $6.55
        eq quantity: 1521.36

CASE STUDY CATEPILLAR
... where is it?