Mini-Case 10: Starbucks Fair Trade Line: This case explores distribution channel relationship dynamics. Students should read the case study text and then answer the associated discussion questions. The approach and answers to questions 2 and 3 can be found in the chart below. Instructors could provide a copy of the chart without the answers populated for students to use as a worksheet. 1. What kinds of power does Starbucks hold over their suppliers in this case? 2. Use the double marginalization problem and solution guides to structure two alternatives: a. Prices to consumers are maintained at $8 and profits are split 3:1 in favor of Starbucks. b. Prices are raised 25% to $10 and profits are split 2:1 in favor of Starbucks 3. What are the resulting mark-ups for the manufacturer and retailer (Starbucks) under each scenario? How will suppliers and consumers respond to either scenario? You can use the table below to illustrate your answers to questions 2 and 3. Don't forget to explain your answers in words for your answer to count