Q1. Pick one important business decision and discuss why knowledge of the state of the economy using macroeconomic indicators should improve decision-making. Make sure you specify which decision process you are analyzing, for example, the decision to buy additional equipment to increase production.

In your discussion, make sure you indicate (1) what data the organization needs in order to make good decisions and (2) how the use of macroeconomic indicators enables organizations to improve their forecasts of the key decision-making data.

Q2. If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95, how will the prospect of an economic bust (expected to decrease consumers' incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell?