Say that you are a manager working for a casual dining chain similar to Brinker International Restaurants' chain of Chili's restaurants. Just like Chili's, baby back ribs are one of your major sale items. Baby back ribs come from pigs. Answer each of the following questions independently; that is, when answering part b, assume that the situation in part a is not occurring. Use demand and supply figures to explain your answers.

a.You read that droughts are raising the price of corn and soy, both major foodstuffs for pigs. What action(s) should your firm take? Use demand and supply figures to explain your answers (if applicable).

b.Dining out at casual restaurants such as Chili's or your restaurant is a normal good. You read predictions that the economy will soon sink into a recession, with people's incomes falling. What do you expect will happen to the price and quantity of dining at casual restaurants? Use demand and supply figures to explain your answers (if applicable).

c. Upper management has asked you to prepare recommendations for the next one to two years. You read that droughts are raising the price of corn and soyandthat the economy will soon enter a recession. Based on what you have discovered, what will happen to the price and quantity of casual dining? What managerial recommendation(s) will you make to your superiors? Use demand and supply figures to explain your answers (if applicable).