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4 August, 10:07

Roger currently runs a restaurant on a busy street filled with many other restaurants. The local health inspector, however, has plans to shut down many of these restaurants. What impact will the closure of restaurants have?

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  1. 4 August, 10:31
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    Pros and cons

    Explanation:

    The shutting down of restaurants like these will have significant effect on the market as a whole. As the question states the street to be a busy street, then the closing of such restaurants will lead to more space for the crowd. Closing down many of these restaurants will also lead to reduced competition for the one that remain opened and, hence, may lead to increased sales of their food.

    However, closing such restaurants will also lead to rise in unemployment of the owner and staff of the restaurants. This can also lead to reduced traffic of people on the street as most enjoy the meals of such restaurants.

    Thus, closing down such restaurants will have both negative and positive impact on the surroundings as a whole.
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