1)Raymond is selling used laptop computers at an average cost of $300.00. There are many similar stores in the same area selling the same used computers for the same amount. Raymond is working hard. He figures that he can make more money by raising the price and that he would not have to work as hard.

Your Comments........

Graphs please !

2)A manufacturer of windows both makes the glass and assembles the final product with a frame. The manager of the glassworks charges the assembly division $6.00 per square foot of glass. Glass can be purchased in the open market for $5.00 per square foot. The total expenses of the glassworks are $4.00 per square foot. Explain what is going on in terms of transfer pricing.

3)Tesla is the largest manufacturer of electric cars. An announcement was made this week that they will discontinue the $35,000 Model 3. Explain the expected market dynamics in terms of Barometric Pricing.