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Business, 20.11.2020 23:00 Ndkeie5286
Consider the Market for Nike Basketball Shoes. For each of the events listed below, identify
which factors of demand and/or supply are affected and draw the corresponding graphs. Indicate
the effect on the new Equilibrium Px and Q. Take each shock separately, i. e., draw a diagram
for Question 1, then another each for Questions 2 & 3, etc.
a.
A memo from Phil Knight is leaked saying that Nike expects to lower prices for their
whole shoe line by 10% next week.
b. A strike by workers in the Nike factory results in a 10% increase in their wages.
c. Under Armour cuts, the price on their top of line basketball shoes falls 15%.
d. Nike develops software that helps them better plan for new shoes and manages inventory.
e. ESPN reports that teenagers across the world are being robbed and beaten up for their
Nike Basketball shoes.
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Answers: 3
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Consider the Market for Nike Basketball Shoes. For each of the events listed below, identify
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