Answer all parts of the following:

Suppose that the restaurant food delivery industry (like Door Dash) is perfectly competitive and in long run equilibrium.Also assume that all suppliers of this service have the same cost curves.

a) With these assumptions, how much economic profit do suppliers earn?

Now assume that a virus dramatically increases the demand for restaurant food delivery.

b) Describe the short-run impact of the virus on the price and quantity of delivery service.

c) What will happen to the number of providers of food delivery in the long run, assuming that demand remains high.

d) Compare price and output in this industry after long-run adjustment to price and output at the start of the problem.