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Impact of government support on employment in the industry

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Reference no: EM133146766

Following the recent Covid-19 lockdown, the NSW government offered $100 worth of Dine and Discover vouchers to residents to support several small businesses in the hospitality industry. Consider yourself the owner of a small takeaway selling authentic Asian cuisines operating in a perfectly competitive market.

1. What will happen to the demand for your products in the short run as well as in the long run? Explain why.

2. Will there be any changes in the prices of your products in the short run or the long run? Explain why.

3. What will be the impact of government support on employment in the industry?

Reference no: EM133146766

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