QUESTION 2. Consider the setiing to be pre-coronavlrus Part A. You are the owner and operator of a local restaurant. The service area and workspace is xed and there is no conceivable way to increase the size of the senrlce area or work_sgace in the current time Enod. However, you face a dilemma: Business is strong. Regular customers and visitors to the local area come for the healthy food created with fresh vegetables, grassfed beef and pork and other locally sourced ingredients. So, the restaurant considers adding extra hours as well as additional wait staff and kitchen staff. Instead of opening at 1AM, now the first shift will begin at 6AM. Instead of closing at 9PM, the last shift will leave at 11PM. More workers in the kitchen, more workers serving customers. A 1 Using the scenario created above, is this the long run or the short run? Explain your response. THIS NEXT PART Minus 2. The owners decide to go ahead and open with longer hours. So now there are more kitchen staff, wait staff and people working in the same griginal space;- A 2 What can this restaurant expect in terms of the change in output or production after adding workers or labour resources? Explain (depends on how you answered A 1). A 3 What can this enterprise or business expect in terms of WW: another unit of out|a_it? Explain. [Think about your answer to question A 1 and A 2.] 'AA Draw the graphs to show the relationship between the change in product from hiring an extra worker [variable resource} and the change in costs from producing another unit of output. (see your answers to A2 and A3) A5 If this is the short run, W for this restaurant to be able to make more adjustments or changes to how economic resources are used? Part B. Part B, 1. Consider the market for memorabilia such as those items recovered from the Titanic, long after it hit the iceberg and sank to the ocean's bottom on April 14, 1912. Items recovered and sold at auction include: a violin (played the song \"Nearer, My God, to Thee\" and sold for $1.7 million during a UK auction in 2013), a menu of the last meal served to first class passengers (sold for $83,000 according to BBC in a 2012 auction), a letter from a son to his mother found in a notebook in the son's pocket (2014 auction, $166,000), a full length beaver coat, given to a woman wearing only her nightgown as she prepared to board the lifeboat (in 2017 sold at auction for $165,000). Other items such as the bell from the crow's nest of the ship, discovered in 1985, is on display at the Titanic Museum in Massachusetts. (Source: https:f/bestlifeonIine.com/titanit-artifacts} httpszllbestlifeonline.comftitanic-artifacts/) Describe the elasticity of supply for memorabilia, such as the items recovered from the Titanic. *Part B. 2. *Draw a graph for the market for Titanic treasures which reects elasticity (for memorabilia). Part B. 3. Assume you are watching a live auction of Titanic treasures online. Hands keep going up, indicating interest in the items. Finally, the auctioneer declares that an item is sold, and announces the price. How would you show that on the market graph you Jiust made? *Show the change on the graph you made in Part B. 2 (use a dotted line, please, and label the new curve). How does elasticity of supply explain such a high price for these items which were sold in auction
