Q1. The COVID-19 outbreak and subsequent public health policy response have caused widespread disruption in most economies. Its effects across sectors in the economy have been extremely heterogeneous, with some industries shutting down almost completely (such as movie theaters), while others potentially benefiting from increased demand (such as general merchandise retailers). Hence, one can argue that the Covid-19 pandemic has caused both labour demand and supply shocks at the sectoral level. Given this situation, assess the following statement for a competitive firm operating in the long-run in a sector which has been affected by a negative supply shock to its labour market due to the Covid-19 pandemic: As result of the negative supply shock to its labour market, this competitive firm will use less of both workers and capital relative to the inputs of production levels before the Covid- pandemic