Answered You can hire a professional tutor to get the answer.
Write a 1 page paper on microeconomics: recession and restaurant dining. Microeconomics: Recession and Restaurant Dining The economic recession that hit the nation in 2009 has had adverse effects on r
Write a 1 page paper on microeconomics: recession and restaurant dining. Microeconomics: Recession and Restaurant Dining The economic recession that hit the nation in 2009 has had adverse effects on restaurants. The supply of goods and services in restaurants was reduced tremendously during this recession. The response that restaurant chains had as a result of reduced spending by the consumers was to reduce its expansions (Sexton 109). Some units were closed, and many employed persons got laid off in the workplace. Many reports indicate that fast food restaurants increased the menu options as a result of the changing economy.
In the recession, many casual dining restaurants faced a shift in the demand for their products. It became cheaper for people eat from home, rather than at these restaurants. At fast-food restaurants, the case was somewhat different. Many drive-through restaurants made an increase in their sales with a rise in demand for fast food. There are aspects of supply and demand that caused these changes. One of these aspects includes the income most of the consumers earned (Sexton 112). The income during the recession was fixed, but the price of foodstuffs sky rocketed. This reduced the demand for most consumers, with many preferring fast food restaurants. Another aspect was the nature of the goods. Casual dining restaurants offered meals that were above the consumers pay grade, thus. the decrease in demand, in many casual restaurants (Sexton 116).
The recession did change many dining habits. Mine, for example, had to be reduced to buying foodstuffs, and cooking from home. It was cheaper to do this as compared to dining in restaurants. Some of the determinants that come into play in such a scenario include the income an individual receives. If the income demands that the desire of goods and services should be reduced, one has to comply with such demands (Sexton 120). The high standards of living require an individual to adapt, thus. giving up of luxuries to consume the most basic requirements. These cause a change in dining habits especially during a recession (Sexton 122).
In conclusion, it is fundamental to recognize the intricate role restaurants play in society. Dining in restaurants is convenient for all time-strapped consumers. It will continue to generate profit in the economy provided the recession is addressed, and societies get back to spending the right amount of money in restaurants.
Work Cited
Sexton, Robert L. Exploring Microeconomics. New York: Macmillan Publishers, 2012. Print.
