If there is an increase in the demand for restaurant meals in an economy in the short run,_____

Question

Quizplus · Accepted Answer

An increase in the demand for restaurant meals in an economy in the short run will likely lead to higher profits for restaurants as they will be able to charge higher prices and sell more meals. This is because in the short run, the supply of restaurants is fixed, so existing restaurants can benefit from the increased demand. However, this may not be sustainable in the long run as new restaurants may enter the market to capture the increased demand.

If There Is an Increase in the Demand for Restaurant