Brick and mortar retail stores were particularly hard hit by the pandemic and several large chains went bankrupt. Others survived by developing or switching to online sales platforms and developing systems like a curbside pickup. Using the lessons of supply and demand analysis, and in particular, the discussion of demand and supply shifters, answer the following and explain your answer: 1) Do these innovations affect supply or demand, imposing the â€all else constant†assumption (the only one can be affected). 2) Identify the shifter. 3) Which direction does the curve you identified shift and why? 4) Describe what happens to price and quantity at the new equilibrium.
Brick and mortar retail stores were particularly hard hit by the pandemic and several large chains went bankrupt. Others survived by developing or switching to online sales platforms and developing systems like a curbside pickup. Using the lessons of supply and demand analysis, and in particular, the discussion of demand and supply shifters, answer the following and explain your answer: 1) Do these innovations affect supply or demand, imposing the â€all else constant†assumption (the only one can be affected). 2) Identify the shifter. 3) Which direction does the curve you identified shift and why? 4) Describe what happens to price and quantity at the new equilibrium.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
