Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Due Monday December 14, 2020 This is Part 1 of your exam and is worth 15% of your final mark Our lives have been totally

image text in transcribed
Due Monday December 14, 2020 This is Part 1 of your exam and is worth 15% of your final mark Our lives have been totally disrupted by COVID 19. People have been laid off, companies have been told to close and many people are working from home. In this paper I want you to discuss the impact of this crisis on supply and demand on a particular industry or product. Remember, that in microeconomics we don't talk about a entire economy. The impact on GDP, unemployment and interest rates are macroeconomic topics, not microeconomic topics. Choose a particular product or industry. Please remember this is an individual assignment not a group assignment. When answering these questions, you need to conduct research to back up your opinion. Cite at least 3 articles that discuss the product or industry you have chosen. 1. Discuss the impact COVID 19 is having on demand for the product or industry you have chosen. What factors are causing demand to shift? Explain at least two of these factors. Make sure you explain if demand is increasing or decreasing for the product and why. (6 marks) 2. Discuss the impact COVID 19 is having on supply for the product or industry you have chosen. What factors are causing supply to shift? Make sure you explain if supply is increasing or decreasing for the product and why. (6 marks) 3. Identify the market structure for this industry. Do you think the market structure had any impact on the change in demand and supply? At what point should the company producing the product shut down production? Explain. (4 marks) 4. How well do you think this industry will recover now that we have started reopening the economy? Explain. (5 marks) 5. Draw the demand and supply curves for this product before COVID 19. Point out equilibrium. Indicate, using labels and arrows what direction demand and supply has gone since the crisis has begun. Point out the new equilibrium. You do not have to make up numbers, but you need to accurately label demand, supply and

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Statistics for Contemporary Decision Making

Authors: Ken Black

6th Edition

978-0470409015, 9780470559062, 470409010, 470559063, 978-0470910184

More Books

Students also viewed these Economics questions