Question
Suppose you work in an industry that tracks the overall economy pretty closely. You have prepared forecasts for 2021 for price and unit sales of
Suppose you work in an industry that tracks the overall economy pretty closely. You have prepared forecasts for 2021 for price and unit sales of a particular product. For each variable (price and unit sales), explain how your forecast would likely be wrong (that is, whether price would be higher or lower than your forecast, and whether units sales would be higher or lower than your forecast, and why) if there is an unanticipated war in the Middle East that causes a large rise in crude oil prices. How would you have to adjust each variable (price and unit sales)?
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