Pranyah's Paleo Restaurant struggled during the COVID-19 pandemic because it was not able to operate as usual. Regulations, uncertainty, and declining revenues put the owner in a financial bind. Pranyah could close the restaurant so that her employees could file for unemployment and the business could avoid the financial losses that could potentially accrue. This decision to close the restaurant would likely have which one of the following effects?

Question

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Closing the restaurant would decrease tax revenues due to the lack of profits from the business. Local traffic would likely decline as patrons would not visit the restaurant, even for curbside pickups. Orders from suppliers would cease and the restaurant would be vacant, at least until a new tenant leased the space.

Pranyah's Paleo Restaurant Struggled During the COVID-19 Pandemic Because It