Question

Today and due to the spread of COVID19, we can observe that some sectors in an economy are expanding will others contracting. Using the demand-supply framework, give an example for one industry that is growing and one industry that is shrinking. Use the graphs to explain your idea and demonstrate why this is happening.

I need the answer of minimum 800 words.

Answer 1

Dear Student,

Below industries growing unexpectly due to spread of COVID-19

1) Lifestyles of Health and Sustainability (LOHAS) and Wellness

the face of the pandemic, immunity can be our biggest weapon. With this in mind, and alongside clear directives from many government authorities to steer clear of crowded places, home exercise programs and the fitness equipment industry are well-positioned to boom

2) Grocery deliveries with a twist

With millions worldwide in quarantine or on lockdown, there are growing opportunities and pitfalls for food delivery companie

3) Online education and remote learning

During this outbreak, many have turned to online education and EdTech companies have found an opportunity here as worldwide traditional learning/training institutions are trying to adapt and accelerate their transformation to remote teaching

4) Remote work

China’s enterprise software industry has been slow to take off in comparison to the US and Europe. Nowadays, the enterprise software industry is picking up faster than ever before with remote work apps witnessing a boom as millions resort to working from home.

Below are the industries those goods / service demand and supply are badly affected due to Corona virus

1) IT Companies

Coronavirus has a mixed impact on tech companies. With work-in-isolation policy being a mandate for employees, there are companies that make the most of it in terms of profit. For example:  

· Slack Technologies Inc. confirms that due to the global fallout from COVID-19, there is a surge of interest in workplace-collaboration software.

· Zoom, an enterprise video communication solution is one of the most downloaded business apps in the US on Apple Store in the 2nd week of March 2020 (according to App Annie).

2) Insurance

The rise of coronavirus cases may end up with the demand for certain insurance types. As the COVID-19 virus continues to dominate the headlines, there is a hike in demand and awareness about insurance plans for health and life coverage.

3. Sports & Entertainment

Movie theatres are temporarily locked down in parts of India, amidst the COVID-19 spread.

4.Travel & Tourism

Airlines are drastically cutting flights and flight rates as more people have decided not to fly during the outbreak. According to the International Air Transport Association (IATA), global airlines may lose $113 billion in sales if the coronavirus continues to spread at this pace.

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