Question
answers to the following questions, including supply and demand diagrams where appropriate. Southern California has many famous industries, but perhaps the most competitive of these
answers to the following questions, including supply and demand diagrams where appropriate.
Southern California has many famous industries, but perhaps the most competitive of these is the food truck industry. Use the supply and demand models to analyze the market for meals from food trucks for each of the following scenarios. Be sure to indicate what will happen to the equilibrium price and quantity of meals sold from food trucks. (We're looking at the market for meals, not the actual vehicles from which they're sold.)
a. Los Angeles bans gratuities (tipping servers) in sit-down restaurants.
b. County governments make it cheaper and easier to get a health department permit.
c. Social media users tend not to give positive feedback to food-truck related posts.
d. The price of meat, grain, and vegetables increases.
e. Fast food restaurants increase prices.
f. Hotter summers and colder winters make it less pleasant to eat outside.
g. Tesla introduces a low-cost, all-electric food truck with state-of-the-art kitchen technology that speeds food production.
h. The government imposes a special tax of $1.00 per order on meals from food trucks.
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