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(8th edition) (the pearson series in economics) robert pindyck, daniel rubinfeld microecon 172

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CHAPTER • Individual and Market Demand 147 relatively few copies of Linux on sale at local stores Vera chooses Windows Can you explain her decision? 15 Suppose that you are the consultant to an agricultural cooperative that is deciding whether members should cut their production of cotton in half next year The cooperative wants your advice as to whether this action will increase members’ revenues Knowing that cotton (C) and soybeans (S) both compete for agricultural land in the South, you estimate the demand for cotton to be C = 3.5 - 1.0PC + 0.25PS + 0.50I, where PC is the price of cotton, PS the price of soybeans, and I income Should you support or oppose the plan? Is there any additional information that would help you to provide a definitive answer?

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