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Consider the household production model. An individual produces some of their meals using precooked food (that requires no preparation time) and some of their meals
Consider the household production model. An individual produces some of their meals using precooked food (that requires no preparation time) and some of their meals using raw food. For each of the following changes, briefly explain whether you expect the change to i) increase, ii) decrease, or iii) have an uncertain effect on a household's purchases of precooked food.
a) Assume that the individual experiences a wage increase.
b) Assume that the price of raw food has increased.
c) Assume that the price of precooked food has increased.
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