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Part 1 - Article Analysis - Read the article excerpt regarding Caterpillar Inc. and answer the questions. Orders for the mining machines and construction bulldozers

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Part 1 - Article Analysis - Read the article excerpt regarding Caterpillar Inc. and answer the questions. "Orders for the mining machines and construction bulldozers made at this sprawling Caterpillar Inc. factory in central Illinois have jumped, in general, three-fold over the past year (2018)...But meeting that boom in demand at the world's largest heavy equipment manufacturer is a challenge..." www.reuters.com 1. Do you think that the supply for new bulldozers is relatively inelastic or relatively elastic? Explain your reasoning. 2. Assume that the price for mid-sized bulldozers increased from $200,000 to $250,000 and the quantity supplied increased from 2,000 to 2,200. Calculate the price elasticity of supply coefficient. Show your work. 3. Assume that the price for dump trucks increased from $75,000 to $90,000 and the quantity supplied increased from 3,000 to 3,600. Calculate the price elasticity of supply coefficient. Show your work. Part 2 - Article Analysis - Read the following article excerpt regarding the 2016 fidget spinner fad. "Fidget spinners had been around for years, marketed as aids for kids with attention problems (a claim that has little scientific backing). But they were never particularly popular. That changed last year (2016), after a rash of videos appeared on Youtube featuring teenagers performing fidget-spinner tricks. That caught the attention of Chinese factories, many of which have begun to employ squadrons of workers to monitor social media and Google Trends, allowing them to jump on the next big consumer-product craze as soon as it starts materializing." 4. In general, how does the rise of Chinese factories that monitor trends affect the elasticity of supply for toys? Explain your reasoning. 5. After the fad ended, assume the price of fidget spinners decreased from $2.50 to $2.00 and the quantity supplied decreased from 15,000 to 10,000. Calculate the price elasticity of supply coefficient

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