Effects of COVID Crisis on Firm's Production and Global Impact

Managerial
economics

TABLE OF CONTENT
Introduction.............................................................................................................................................3
Aggregate demand...........................................................................................................................3
Aggregate supply.............................................................................................................................4
EFFECTS OF COVID CRISIS ON FIRM’S PRODUCTION.........................................................4
GLOBAL IMPACT.........................................................................................................................6
SAFETY MEASURES IN FRANCHISE........................................................................................6
Conclusion...............................................................................................................................................7
References...............................................................................................................................................7

Introduction
Demand is the quantity of consumers who are eager and capable to pay the
price and able to buy the products at different prices during a given period of time. It
implies consumers desire to acquire the commodity, the willingness and ability to pay
for it. Aggregate demand is the total amount of demand for the finishes goods and
services produced in the economy. It is expressed as the full measurement of money
which is exchanged for the commodities at a particular price and point of time.
Supply is the amount of the resource that company,manufacturers, labors or other
economic agents are willing and able to provide the commodity in the marketplace or
to an sing;e individual.Aggregate supply is known as the total amount of products
which are supplied by the supplier within an economy at a given overall price in a
given period. In this respective report of Mc donald, there have been changes in
demand and supply due to Covid crisis which affected the market very rapidly due to
high number of cases rising all around the world(Haider, Singh and Sultana, 2021).
Aggregate demand
McDonald’s corp reported a bigger than expected drop in global same stores sales as
the burger chain’s restaurants across the world were shut because of COVID19
pandemic, limiting operations to only drive-thru and delivery. Also in united states the
franchise operates more than a third of the restaurants, the demand of the food
decreased as people were not allowed to go out as thee was a strict lockdown all over
the world and the franchise is all spread-ed in world basis and is the most favourite
franchise in India of youth and the burger that this McD provides is the best over all,
this is also proved through the study. The franchise have been struggling to cope with
the changing dynamics and consumer behavior around the health crisis, forcing them
to simplify menus and shift largely to online and mobile orders for pickup, deliver and