Question

Based on your learning in Microeconomics, explain how COVID-19 has a favourable and an adverse impact in today’s situation, with aids of diagram “Market Forces of Supply and Demand” and “Elasticity”.

Answer 1

Micro economics the subject which is vital in the study of price determination thus, also known as "Price theory"

The study begins with the market forces Demand and Supply

An increase in price contracs the qunatity demanded where as an decrease in price extands the quantity demanded and vice versa.

The relation ship is inverse in nature with price and demand.

An increse in price rises the supply and decrese in price reduces the supply thus , the relation between supply and price poisitive or direct.

Elasticity of demand and supply is quite important in any economy, as we have observed in the above given definations.

It is clear the the price or any other related changes like consumers income . tastes, prices of related goods also going to influence the demand and supply, here the decrese and increase in demand supply canbe measured with the help of elasticity.

The proportionate change in the quantity demanded /the proportionate change in price

The proportionate change in supply / proportionate change in price

The above given can be applide to find the change in elasticity of demand and supply.

Thus let us find the impact of pandamic in preset economy favourable as well as adverse

in order to go in depth of the study we need to first has to know about a clarification various goods and services available in economy to satisfy the needs of the consumers, depending upon the day to day needs and employbility the impact of any suddan change reflects on every act of economic activity.

Thus, in the context world wide as whole there is more adverse effect rather than positive impact.

The quite best point would like to highlight here in international cooperation in pharma developments.

and during amid of pandamic though the industrial goods productivity effected but prodiction of agriculture and dairy sector has positive effect and quite forward to meet the demand.

Thus one main important thing is have to observed that the employbility has been effected and thus the income levels of the consumers .

productivity effective utilization of resources at the optimum level the drivers of economic development were adversly effect in many economies .

coming to the level of elasticity and changes in demand as the income levels come down, purchasing power had decreased and inflation hit the economies.

Thus, unless every economy of the world though the developing or the developed nations come forword with proper stratgy this is is proved to be the great economic disastar of the world.