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Melbourne is well-known to be a dynamic city with numerous cafes. Since the beginning of the pandemic in March 2020, international travel has been banned
Melbourne is well-known to be a dynamic city with numerous cafes. Since the beginning of the pandemic in March 2020, international travel has been banned in Australia (and consequently in Melbourne). Assume that cafes are in perfect competition in Melbourne and the initial market price of a take-out coffee is 5 dollars. Assume that cafes are authorized to open if they want during the lockdown. Provide a graphical representation of this shock and explain how the travel ban might impact: a. The supply curve of take-out coffees b. The demand curve of take-out coffees c. The equilibrium in the market for take-out coffees You can draw diagrams in MS Word or on paper. In the latter case just make a good quality photo and insert it in this Word file to the relevant
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