Question
Given what has happened to businesses from the lockdown for COVID-19 a) When customers were prevented from dining at restaurants, what was the initial impact
Given what has happened to businesses from the lockdown for COVID-19
a) When customers were prevented from dining at restaurants, what was the initial impact to the firm? Draw what happens to the firm, using the appropriate market structure model for restaurants. Show where the firm produces, the level of output, price charged and any profits or losses. (be sure to label everything properly)
b) If the restaurant started offering takeout and delivery, what were they trying to do? Draw that effect on the firm, using your graph in a). Show where the firm produces, the level of output, price charged and any profits or losses. (be sure to label everything properly)
c) What impact does allowing the limited opening of dining in have on the restaurant? How is the restaurant going to make a decision? What will they consider when making its decision to open or not?
d) What economic term would you use to describe people's choice to not self-quarantine after being exposed to COVID-19? What is their decision doing to others? Draw that situation in a market.
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