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Analyse changes in market conditions for the pizza delivery

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Reference no: EM132726106

Question 1: Your pizza delivery business 'Fast Pizza' has been operating for a number of months. Use the process of comparative statics to analyse the following changes in market conditions for the pizza delivery (Assume that your business is one of many in a competitive market).

a) The government locks down the economy to prevent the spread of a deadly infectious virus, but still allows food delivery.

b) The economy falls into a deep recession reducing consumer income.

c) Oven Inc develops a new pizza oven that significantly reduces the costs of electricity and increases the number of pizzas that can be cooked per hour.

Reference no: EM132726106

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