Q1. The following video contains a BBC report regarding availability of N-95 masks in Pakistan

https://www.youtube.com/watch?v=VLpDvYop_Kg

a.In light of the report, what are the likely reasons of this shortage? Specify each demand and/or supply side factor.

b.What are the implications for a local firm just entered in this business?

c.The newly entered firm estimated the daily demand function for N-95 as follows

Q = 30 - 50P

Does this function is in-line with the situation stated in the video report? Why or why not?

Q2. The average product of labor for a firm producing medicated soap is as follows:

APL = 1000 + 30 L - L2 (Where production is recorded on per month basis)

a.Calculated the range of labor in the stage 1, 2 and 3.

b.Identify the point of diminishing returns.

c.If price of this soap is Rs. 10 whereas monthly wage of labor is Rs. 9000 per worker, how many workers should be employed?

Q3. The average revenue and supply function of locally manufactured disinfectant spray is as follows:

Q = -100 + 4P

AR = (100P - P2)/Q

a.Find initial equilibrium price and quantity of the spray.

b.Due to COVID-19, demand increases as per following new demand function

Q = 120 - P

Find new equilibrium price and quantity.

c.Due to increased demand, new suppliers enter in the market thus shifting supply curve as per:

Q = - 80 + 4P

Calculate the change in equilibrium price and quantity.

Q4. The following link presents an article describing impact of COVID -19 on different businesses in China.

https://www.china-briefing.com/news/covid-19-impact-business-real-opens-new-growth-areas-op-ed/ with the help of graphs, analyze the situation in service industry especially in the disaster recovery stage.