1. You are a co-owner of a carinderia. You sell at least one of each viand-chicken, beef, fish, pork- in your daily lunch menu. Each meal is typically served with a side dish of vegetables. However, there has been an increase in the price of all meat products lately. How will you cope with the higher cost of your main ingredients? Propose at least one solution. To help your partner visualize your proposed solution, you need to create graph illustrating the likely effect of an increase in the cost of raw materials on equilibrium price. The graph must be accurate and clear, with all variables labeled correctly.
2. Cite at least three industries in the Philippines that rely heavily on imported raw materials in manufacturing their products. What happens when the price of their imported raw material arises? What is the typical response of the manufacturers in the industry? Discuss and support your answer with a graph.