Question

What would happen to demand for each of the following goods or services during current Covid-19 pandemic? Would demand increase or decrease? Why? Relate your answer to our economic theory.

a) Restaurants

b) Pizza delivery services

c) Dollar store items

d) Hand sanitizers

e) Netflix video streaming

f) Gasoline

g) Cars

h) Bikes

i) Houses

j) Chicken (given that beef and pork are more expensive due to lockdown of some meat processing companies)

Answer 1

A) Restaurant:- the demand of restaurants got decreased. Because due to lockdown, all people are locked at their homes and restaurants is bot consider as a safe place to go for a dinner or for party.

B) Pizza delivery services demand also got decreased. Due to social distancing.

C) Dollar store items deman also got decreased. Because due to lockdown, people are quarantined at their homes.

D) The deman for hand sanitizers got increased due to hygiene purposes and to protect outseleve from COVID.

E) the demand for Netflix video streaming got increased. becuse due to to lockdown, all are quarantined at their homes and watching movies and web series on Netflix

F) Demand for Gasoline also decreased due to lockdown.

G) demand for cars also decreased. Because at the times of pandemic, all the people demanding more money in their hands. So, demand for cars got decreased

H) Also the demand for bikes got decreased.

I) Houses, the demand for houses also decreases because as explained above that all the people at the times of pandemic are demanding more money in their hands rather then investing it anywhere.

J) chicken demand also decreases because it is given that due to lockdown these become expensive and hence demand for chicken decrease.