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During the Covid epidemic, McDonald's, like other food brands, encountered issues as a result of fewer customers and supply chain interruptions. These variables influenced McDonald's
During the Covid epidemic, McDonald's, like other food brands, encountered issues as a result of fewer customers and supply chain interruptions. These variables influenced McDonald's product demand and supply. The drop in consumers resulted in a drop in demand for McDonald's meals. With dining out limits and people staying at home, fewer people were eating at McDonald's. The demand curve shifted to the left as a result, suggesting a lesser amount demanded at each price level. Concurrently, supply chain disturbances made it impossible to maintain consistent production levels. Delays in procuring ingredients and packaging hampered McDonald's product supply. The supply curve moved to the left, suggesting that there was less supply at each price level. Overall, the combined effect of lost consumers and supply chain interruptions reduced the quantity needed and provided for McDonald's items. This resulted in a drop in the equilibrium quantity, but the effect on the equilibrium price was unknown. These problems underscore the difficulties that McDonald's and the larger market experienced during the epidemic. In the face of such upheavals, adapting to changing customer behavior and resolving supply chain challenges became critical for sustaining operations.
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