1.) Considering the EconTalk episode “Canice Prendergast on How Prices Improve a Food Fight” (12/07/2015), please listen to the podcast and answer the following questions:

a. How were food donations allocated before Canice and associates helped create the new system? Was this allocatively efficient? Explain. Use evidence from the podcast to support your answer. (6 pts)

b. Summarize the new system. What were some of the practical challenges that were faced in its creation? (6 pts)

c. According to Prendergast, was the new system able to facilitate a more efficient distribution of trucks? Explain. Use evidence from the podcast to support your answer. (6 pts)

d. Professor Prendergast discusses price shocks during the 07-09 recession. How might a recession create auction price spikes in general here? Explain. Use a supply and demand diagram to frame your answer. (6 pts)