Doner Kebab with a Cup of Matcha

I have teenage nephews and nieces that live in California. Two summers ago, we visited them and they talked about how they go out for Doner Kebabs on a regular basis and then sit around sipping the perky, delicious Matcha, a Japanese green tea alleged to be healthy.

It turns out that Kebabs and Matcha were both exploding in popularity across California.

a). Graph and take a guess at what the Matcha tea or kebab market might have looked like in say 2018 as compared to 2015 after the excitement and newfound interest across California. Make the assumption that these goods by 2018 were in a constant cost competitive industry moving towards the long-run, but not yet in the long-run.

(Choose either the Matcha or the Kebab market and show the Industry graph and an individual supplier graph).

For the next two years, California will increase its minimum wage by $1/hour until reaching $15/hour on Jan 1, 2022.

b). How might this change affect the market for Matcha or Kebabs? Assume that many of the workers in these industries are minimum wage workers and that there will be no change to the price of capital. Show on a revenue and cost graph and then a supply and demand graph.