Analyse, in two different partial equilibrium models, what the implications of reducing each of these two different forms of food waste would be. Assume perfect competition in both cases. Illustrate your answers graphically. 1) In a rich country, suppose that improved storage technology at the household level means that households can, at no extra cost, reduce their food waste compared to current levels. What will happen to market demand, market supply, and the equilibrium price in the short run as a result? What will the new long run equilibrium look like? 2) In a poor country, suppose that improved storage technology at the producer level means that producers can, at no extra cost, reduce their food waste compared to current levels. What will happen to market demand, market supply, and the equilibrium price in the short run as a result? What will the new long run equilibrium look like?
Analyse, in two different partial equilibrium models, what the implications of reducing each of these two different forms of food waste would be. Assume
1) In a rich country, suppose that improved storage technology at the household level means that households can, at no extra cost, reduce their food waste compared to current levels. What will happen to market demand, market supply, and the
2) In a poor country, suppose that improved storage technology at the producer level means that producers can, at no extra cost, reduce their food waste compared to current levels. What will happen to market demand, market supply, and the equilibrium price in the short run as a result? What will the new long run equilibrium look like?
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