1. PR Newswire (10/15/2020) reports that the shift to online sales caused by the pandemic is...

1. PR Newswire (10/15/2020) reports that the shift to online sales caused by the pandemic is impacting the market for labor in warehousing, order fulfillment, and order delivery. Use the supply-and-demand model to explain and illustrate graphically how this change will impact the equilibrium price (wage) and quantity of labor in the warehousing, order fulfillment, and delivery market, ceteris paribus.

Expert Solution

A demand curve or a supply curve is a relationship between two variables : quantity on the horizontal axis and price on the vertical axis. The assumption behind a demand curve or a supply curve is that no relevant economic factors, other than the product's price are changing. Economists call this assumption ceteris paribus.

Any given demand or supply curve is based on the ceteris paribus assumption that all else is held equal. We apply ceteris paribus when we observe how changes in price affect demand or supply.

The pandemic has put forwarded many uncertainties in the market for labour in warehousing, order fulfillment, and delivery market. There is an increase in the demand for online marketing. As people are afraid to go out for marketing, many has shifted to online marketing. So there is a decrease in the demand and supply of market labour, order fulfillment and delivery market.

According to ceteris paribus assumption, the equilibrium price will varies. Also the quantity of labour is decreased. The simultaneous shifts can happen in some possible ways. They are:-

(1) If the supply curve remains unchanged, and the demand curve shifts to the right, equilibrium price and quantity will increase.

(2) If supply curve remains unchanged and the demand curve shifts to the left, equilibrium price and quantity will decrease.

(3) If demand curve remains unchanged and the supply curve shifts towards the right, equilibrium price decreases and the equilibrium quantity increases.

(4) If demand curve remains unchanged and supply curve shifts towards the left, and equilibrium quantity decreases.

Therefore, the equilibrium price and quantity will vary according to the changing conditions in the demand and supply curve of the market.

Rahul Sunny answered 1 year ago

The Global pandemic in year 2020 has caused a decline in the prices of equity and...

The Global pandemic in year 2020 has caused a decline in the prices of equity and credit securities. Many superannuation funds are expected to generate negative returns on investments during this period. Required Discuss how negative returns would affect employees and employers if the superannuation funds is a: i. defined benefit plan ii. defined contribution plan

Essay on How has the coronavirus pandemic and resulting shift to online learning class affected your...

Essay on How has the coronavirus pandemic and resulting shift to online learning class affected your life? Is online classs easier or harder than the traditionals face to face class? What cahllanege s have you experienced?

A warehouse employs 28 workers on first shift, 15 workers on second shift, and 10 workers...

A warehouse employs 28 workers on first shift, 15 workers on second shift, and 10 workers on third shift. Eight workers are chosen at random to be interviewed about the work environment. Find the probability of choosing exactly five first-shift workers. The probability of choosing exactly five first-shift workers is nothing. (Round to three decimal places as needed.)

RESEARCH REPORT The Covid-19 Pandemic of 2020 has caused great physical, emotional, and economic devastation on...

RESEARCH REPORT The Covid-19 Pandemic of 2020 has caused great physical, emotional, and economic devastation on a global level. Certain countries have done a relatively better job, to date, dealing with both the significant health crisis – in terms of containing the disease and also allowing their economies to continue operating without complete freezing of economic activity. Your report should compare and contrast two different countries: 1. A country doing a poor job balancing health and economic impacts vs. 2....

How has IFRS 15 affect financial statements of 2020 especially since the pandemic is going on.

1. Consider the following data set: D= (5, 10, 15, 15, 5, 10, 15, 15, 5,...

1. Consider the following data set: D= (5, 10, 15, 15, 5, 10, 15, 15, 5, 10, 15, 15) SD= 4.33 How would you add a number to this set while keeping the SD the same? 2. tossing a coin 50 times A. from the 50 flips compute the proportion of heads from your 50 flips. B. For a 95% confidence level find the z critical value C. compute the 95% confidence interval for p, the margin of error from...

Question 1: As the 2020 pandemic rages on and countries around the world work their way...

Question 1: As the 2020 pandemic rages on and countries around the world work their way through various stages of shutdowns and re-openings, these countries are experiencing a historic adverse spending shock. Recent early successes in vaccine development have raised hopes for this shock to be temporary, and already there are signs that spending could return to its ‘normal’ levels as early as 2021. On the inflation front, in many countries although there is some limited evidence of specific products...

Below are purchases and sales for Hector retail company for the year 2020. January 1 purchased 10 UNITS at...

Below are purchases and sales for Hector retail company for the year 2020. January 1 purchased 10 UNITS at $20 each January 2 purchased 20 UNITS at $25 each January 3 purchased 20 UNITS at $ 30 each January 4 Sold 25 UNITS at $ 50 each (A) USING FIRST IN FIRST OUT METHOD (FIFO) DETERMINE THE FOLLOWING: A,.COST OF GOOS SOLD B. COST OF ENDING INVENTORY C. GROSS PROFIT (B) USING LAST IN FIRST OUT METHOD (LIFO) COST OF ENDING INVENTORY COST OF GOODS SOLD GROSS PROFIT

Sales will grow by 10% in 2020. All costs, assets, and current liabilities vary directly with sales

Income Statement Year 2019 2020 Net Revenue 140,000 - Cost of Goods Sold 70,000 - Depreciation Expense 9,000 EBIT 61,000 - Interest Expense 10,500 Income Before Taxes 50,500 Tax Expense 10,605 Net Income 2019 Dividend 39,895 9,974 Balance Sheet Year (end of) 2019 2020 2019 2020 Assets Liabilities Current Assets Current Liabilities Cash and Equivalents 10,000 Accounts Payable 21,000 Accounts Receivable 25,000 Long-term Debt 95,000 Inventory 12,000 Total Liabilities 116,000 Fixed Assets, Net 165,000 Stockholders' Equity Total Assets 212,000 Common...

The current COVID-19 pandemic has caused large price reactions, for most financial assets. - 1 -Discuss...

The current COVID-19 pandemic has caused large price reactions, for most financial assets. - 1 -Discuss how the price reactions can be understood in the context of equilibrium asset pricing. - in light of your answer in 1), are the shocks likely to be permanent or transitory? Hint: Cash flows, discount rates, asset classes. - Could we have a situation where prices are permanently negatively affected, but consumers are still better of (those that didn’t lose a lot as investors)?

Question