Effect on demand and supply due to the onset of a pandemic

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Expert Solution

Pandemic is a situation which causes trouble for the whole world

it affects lot of people and economy very badly

when it comes to demand and supply they also got disturbed

As we all know that demand curve shifts right when there is increase in demand and demand curve shift left when there is decrease in demand

similarly goes with supply as well

so when the pandemic hits what happens in the market is that due to many people getting affected by it Direct or indirectly then it causes less demand

many people got lock inside their homes

for example we can clearly see Pandemics like influenza in 1920 or the covid-19 which drastically hits the supply chain

The most affect by it is the supply chain because due to less labour force availability, the production decreases and causes the shift of supply curve to the left

the supply curve shift will be much higher as compared to demand

it is described below in the diagram

Rahul Sunny answered 1 week ago

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