Is better off with or without the crp


Last year a pestilential fungus ravaged the cocoa elds. The price of chocolate has risen abruptly to $1 per ounce. The government is considering emergency measures to aid su ering chocolate addicts. One plan being considered is the Chocolate Relief Plan (CRP). This plan would set a price ceiling of $0.80 per ounce on chocolate. This would cause a shortage, so the CRP will limit consumption to no more than 10 ounces of chocolate per person per week. At $0.80 per ounce, enough chocolate would be produced for everyone to have 10 ounces. Tomoe buys less than 10 ounces per week at $1 per ounce, but would buy more than 10 ounces if the price dropped to $.80. Is Tomoe better off with or without the CRP?

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Microeconomics: Is better off with or without the crp
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