1.Suppose you own a local restaurant chain that sells through brick & mortar locations and also offers take-out and characterized by the following demand and supply curves

Qd = 3,0000,000 - 600P + 200M

Qs = 1,000,000 + 400P

a.Assume M=15,000. Find the market price and quantity for your firm.

b.Assume COVID hits and since consumers are reluctant to leave their homes and dine-in but still buy take-out, the demand changes to

Qd = 2,000,000 - 600P + 200M; M=15,000

Find the market price and quantity for your firm.

c.Building on the situation in b, suppose the Governor forces you to close your dine-in facilities and supply changes to

Qs = 400P

Find the market price and quantity for your firm.

d.Building on the situations in band c, suppose a recession develops and reduces income by 1/3, which now cuts into your take-out sales.

Find the market price and quantity for your firm.

Explain what is happening to the prospects for your firm.