provide the Actual Drawn Graphs based on this graphical analysis provided below Graphical Analysis Pre COVID Analysis In the pre COVID scenario, the demand curve for dine in restaurants may be represented by D1, and the cost curves (including average total cost, ATC, and marginal cost, MC) are represented by C1 The profit maximizing price and quantity are determined where the marginal cost (MC1) intersects with the demand curve (D1) This point represents the equilibrium price (P1) and quantity (Q1) for the dine in restaurant Post COVID Analysis a) Decreased Demand Due to the impact of COVID, the demand for dine in restaurants has decreased This is indicated by a leftward shift in the demand curve (D1 to D2) as mentioned in the article The decrease in demand could be attributed to factors such as consumer caution, economic uncertainty, and the preference for takeout or delivery options b) Higher Costs The article also mentions that restaurant operators are experiencing rising costs, such as rent and ingredients This leads to an increase in average total cost (ATC) and marginal cost (MC) curves Let's represent this increase as a shift from cost curves C1 to C2 The new equilibrium point is determined by the intersection of the new marginal cost curve (MC2) and the decreased demand curve (D2) This intersection represents the new profit maximizing price (P2) and quantity (Q2) for the dine in restaurant in the post COVID scenario

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Mar 17, 2024

provide the Actual Drawn Graphs based on this graphical analysis provided below: Graphical Analysis: Pre-COVID Analysis: In the pre-COVID scenario, the demand curve for dine-in

provide the Actual Drawn Graphs based on this graphical analysis provided below:

Graphical Analysis:

Pre-COVID Analysis: In the pre-COVID scenario, the demand curve for dine-in restaurants may be represented by D1, and the cost curves (including average total cost, ATC, and marginal cost, MC) are represented by C1. The profit-maximizing price and quantity are determined where the marginal cost (MC1) intersects with the demand curve (D1). This point represents the equilibrium price (P1) and quantity (Q1) for the dine-in restaurant.
Post-COVID Analysis: a) Decreased Demand: Due to the impact of COVID, the demand for dine-in restaurants has decreased. This is indicated by a leftward shift in the demand curve (D1 to D2) as mentioned in the article. The decrease in demand could be attributed to factors such as consumer caution, economic uncertainty, and the preference for takeout or delivery options.

b) Higher Costs: The article also mentions that restaurant operators are experiencing rising costs, such as rent and ingredients. This leads to an increase in average total cost (ATC) and marginal cost (MC) curves. Let's represent this increase as a shift from cost curves C1 to C2.

The new equilibrium point is determined by the intersection of the new marginal cost curve (MC2) and the decreased demand curve (D2). This intersection represents the new profit-maximizing price (P2) and quantity (Q2) for the dine-in restaurant in the post-COVID scenario.