Assume that the food delivery market in Australia is perfectly competitive. Use the market demand and supply model to answer the following questions: (a) Illustrate the market equilibrium for food delivery in Australia while Deliveroo was still in business. (b) Explain, with the aid of a new diagram, the impact of Deliveroo’s exit from the Australian market for food delivery from part (a), assuming that consumer preferences for food delivery have not been affected. (c) Following Deliveroo’s collapse, suppose that consumer preferences for food delivery services increased. Explain the impact of this change on the market for food delivery in Australia and illustrate on your diagram from part (b)

DEMAND & SUPPLY FUNDAMENTALS Analysis:  September, 2017, over twenty wildfires devastated over 5000 homes, businesses, and institutions in Northwestern California.  Many acres of NAPA  Valley grapes and several small wineries were destroyed.  Wine enthusiasts believed there would be a sharp decrease in the size of the Fall Napa Valley grape harvest.  Seemingly this would not affect the market for red wines too much because there should be many substitutes from stocks around the world.  However, this disaster has occurred at a particularly unfortunate time.  An increasing number of research studies have concluded that red wine produced from NAPA Valley grapes is instrumental in promoting healthy heart longevity relative to red wine produced from other sources. This phenomenon is attributed  to the unique microclimate and soil conditions found in NAPA Valley.   You have to analyze the economics of the situation and explain it to potential investors in Napa Valley Wines.  What affect…

Explain in detail

Illustrate to the right, a graph showing a company being profitable in a competitive market in the Long Run selling its product at Market Price (MP*) based on its Average Variable Cost (AVC) and Average Total Cost (ATC) and Marginal Cost (MC). Identify each key point on the graph. Observe the Short - Run Loss information illustrated in the graph to the right. With respect to Price (P*"), Average Variable Cost (AVC), Average Total Cost (ATC), Marginal Revenue (MR), and Marginal Cost (MC), what assumption would you make if the firm was selling its product at P What would happen if this were to continue in the long run? Is there a Shut Down point? ** ? Notice that MR = P