Pick one event that occurred in a certain market and explain how that could affect/shift the...

Pick one event that occurred in a certain market and explain how that could affect/shift the supply and/or demand curve. What would be the resulting equilibrium price and quantity?

Expert Solution

The best example of recent activity of demand and supply in the market is the effect of current Covid19 pandemic

it affects the whole world by affecting more than 15,00,000 people

it also affect the demand and supply chain

due to less demand by the consumers it causes fall in the GDP ,as GDP is the sum of consumption ,investment, government spending and net export

but due to this novel Covid19 the demand has gone down which causes the shift of demand curve to the left
supply is also decreased but not much like the demand

it is shown by the graph below

Rahul Sunny answered 2 years ago

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