• HON Office furniture produces a line of metal office file cabinets. The companys economist, having investigated a large number of past data, has established the following equation of demand for these cabinets in 2015:
• Forecast 2016s sales.
• What will be the effect if Office Max lowers its price to $32? If it raises its price to $36?
• What will happen if HON reacts to the decrease mentioned in part b by lowering its price to $37?
• If the index forecast was wrong, and it turns out to be only 140 next year, what will be the effect on HONs sales?

As a manager, you may either benefit or not from technological changes. Explain how technology can be a driving force that shapes competition and the way a market functions. Be specific in indicating how technological change can:

(a) affect the rivalry among existing competitors

(b) change barriers to entry into the industry

(c) influence the bargaining power a firm has with its suppliers and its consumers, and

(d) affect the competitive pressures from substitute products.