Answer to Question #81435 in Microeconomics for Preet

Question

Consider a homeless guy desperate for food ? Can u think three ways of substitution that he may be willing to make ? In each case plz specify what he give up and what he gets ?

Answer 1

A homeless guy who is desperate for food may choose to substitute food for a home. In this case, he gives up food to get a home. The second option if home for food. In this case, he gives up shelter to get food to eat. Lastly, the person may substitute both home and food for nothing. In this case, he gives up on both, and remains homeless and hungry.