2.		Starbucks chief bullish as crisis engulfs smaller coffee shops Kevin Johnson, Starbucks' chief executive officer, was optimistic that the global pandemic will only briefly interrupt the firm's growth. The world's largest coffee chain overhauls cafs, deploys artificial intelligence and raises wages to sharpen its competitive advantage. Yet this confidence contrasts with the crisis engulfing smaller specialty chains, independent and family-owned coffee shops, whichdo not have the financial prowess that Starbucks has. Some larger groups have also struggled, and Starbucks stands to benefit from that. Covid-19 hit Starbucks hard, cutting sales by 40% during the second quarter of 2020. The pandemic highlighted its reliance on foot traffic in downtown business districts and transport hubs. In the US, Starbucks is moving its outlets towards drive-through in the suburbs and pick-up in city centres. While the firm plans to open about 2,150 outlets this year, it is also closing 1,050 branches. The net effect will be fewer new stores. The company continued to pay landlords through the pandemic, but it was looking to renegotiate some rental arrangements. Mr Johnson is not abandoning the sit-down caf format that his predecessor Howard Schultz called the 'third place' - neither home nor work. Starbucks has invested in a package of artificial intelligence tools called Deep Brew. It has used AI software to turn data feeds on Covid-19 cases into recommendations of how its stores need to adapt, and to make more personalised offers to users of its mobile app and loyalty programme. Starbucks' digital push has been particularly aggressive in China, where the proportion of orders made on mobile phones more than doubled. The firm wants to become 'world class' in its use of technology - not to replace staff 'but to free them up' to concentrate on customer service. Using Deep Brew to handle inventory management, staffing schedules and other administrative tasks has improved both customer loyalty scores and sales. Source: Adapted fromFinancial Times, 9 December 2020
	(a)		"Starbucks has invested in a package of artificial intelligence tools called Deep Brew. It has used AI software to turn data feeds on Covid-19 cases into recommendations of how its stores need to adapt, and to make more personalised offers to users of its mobile app and loyalty programme". Due to COVID-19, explain the effect on the price level and quantity for Starbucks when it invested into AI software. Complete the Diagram 1 given below to support your answer.

Price (RM) SSo PO Quantity ( unit ) QoPrice (RM) SSo P2 PO P1 DDo Quantity ( unit ) 0 Q1 QO Q2