Answered: In early 2023, because of food supply…

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter1: The Economic Approach

Section: Chapter Questions

Problem 1CQ

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In early 2023, because of food supply chain issues, several supermarkets in the UK such as Tesco, Aldi, Asda and Morrisons had to ration supply for customers as there was a shortage of fruits and vegetables such as lettuce, tomatoes, peppers, cucumbers, broccoli, cauliflowers and raspberries etc You are required to examine the impact on a consumer using the tools of managerial economics.

A) Consider two goods (any two fruits or vegetables) A and B and using the indifference curve and budget line draw the satisfaction-maximizing choice associated with the two goods. B) now suppose one of the products is rationed. Explain the impact on consumer choice (using the indifference curve and budget line). For this question answer need must show indifference curves and budget lines thanks

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