Problem
1. In the last decade or so there has been a dramatic expansion of small retail convenience stores (such as Kwik Shops, 7 Elevens, Gas ‘N Shops), although their prices are generally much higher than prices in large supermarkets. What explains the success of the convenience stores?
2. Using the utility-maximization rule as your point of reference, explain the income and substitution effects of an increase in the price of product B, with no change in the price of product A.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.