Orange, a computer manufacturer, produces a very basic laptop computer at a low price of $300 but also produces a more sophisticated model at a price of $2,500 [and many other models in between!]. At the end of 2017, Orange had sold 10,000 of the low-priced laptop and 800 of the higher priced model. In 2018, the country experienced economic growth of 5%. This economic growth of 5% is equated with an increase in national income of 5%. At the end of 2018, Orange had sold 9,000 of the cheaper model, and 900 of the more expensive laptop. 

1. Calculate the YEO for each model. 

2. What does the value of YEO for each model signify?

3. What is Orange likely to do if economists predict a recession in the following year?