Question
Please explain in detailed. From the perspective of both consumers and restaurants, the pandemic de- creased the value of the alternatives to food delivery. At
Please explain in detailed.
From the perspective of both consumers and restaurants, the pandemic de- creased the value of the alternatives to food delivery. At the same time, the widespread adoption of e-bikes combined with decreased traffic increased the productivity of urban delivery. If markets are perfectly competitive and delivery fees (paid by consumers + paid by restaurants) increased, what can we infer about the market for food delivery services?
A. The shift up and out of the demand curve was large relative to the shift in the supply curve.
B. The shift down and in of the demand curve was large relative to the shift in the supply curve.
C. The shift up and in of the supply curve was large relative to the shift in the supply curve.
D. The shift down and out of the supply curve was large relative to the shift in the supply curve.
E. Both shifts worked to push prices higher.
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