RB, Inc., is a wholesaler specializing in dry foods, such as rice and dry beans. Assume that these dry goods are all considered inferior goods. RB, Inc.'s manager is troubled by a recent article in The Wall Street Journal that says a recession is imminent and that income will fall by 3 percent over the next year. What do you think is likely to happen to the equilibrium price of the products RB, Inc., sells? You have to explain what is expected to happen to demand and/or supply and therefore to the equilibrium price.

How does globalization (buying parts from all over the world and selling to consumers all over the world) allow firms to enjoy economies of scale they could not benefit from even 30 years ago?