Question
a. In November 2020, England's lockdown restrictions only permitted people to meet with one other person from another household in public outdoor spaces. As a
a. In November 2020, England's lockdown restrictions only permitted people to meet with one other person from another household in public outdoor spaces. As a result, households prepared for the winter months of socializing in their gardens. This set off a scramble for heaters that allowed people to socialize safely - and warmly.
Using a diagram, analyze the effects of the restrictions on indoor gatherings on the price elasticity of demand for outdoor heaters. In addition, analyze the potential revenue implications for outdoor heating companies such as Herschel Infrared Heaters.
b. With the aid of diagrams, describe the shape of the long run and short average cost curve and explain why?
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