Question

In this exercise, we focus on the economic impact of the COVID-19 pandemic

Due to the COVID-19 pandemic, online teaching becomes a norm in many countries. What are the consequences of students switching to online learning in the following markets?

a) (10 points) Laptops.

b) (10 points) Classroom equipment (e.g., chairs, desks, whiteboards).

There are four markets you need to analyze separately. Assume that each market is perfectly competitive with no frictions (i.e., equilibrium point is reached with no obstacles); this gives us a permission to conduct the demand-supply analysis. In each case, start with clearly specifying who the buyers (demand) and sellers (supply) are. Then, conduct the supply-demand analysis. Provide graphical analysis in tandem with explanation.

(Hand written not allowed)

Answer 1

a- the pandemic made shutdown andc social distancing a way of life and such meaoptsuures led to online learning. This caused

1- Ain surge in the demand for laptops and accessories. The demand rose upto 40% during lock down.

2-The industry demand curve shifted to right due to this external factor which can be called environmental factor. Supply curve also shifted to right

3- prices of laptops increased

4- prices of refurbished laptops increased.

5- prices of supplementary goods laptop accessories like headphones, chargers increased

6- new companies entered in business

7-Demand for wifi routers incresed,

8-prices of internet data incresed,

9- Demand for IT engineers increased as updates of existing systems was needed

10- demand for new and advance version with faster speed increased.

b- Demand for class room equipments dipped as it was not in much use due to online learning

2- prices of these items dipped

3- stock clearnace sale was announced by many companies to reduce their losses by clearing existig stock

4- Un employment rate increased in this sector

5- Prices of supplements dipped

6-people involved in maintenance and transport also faced unemployment.

7- Suppliers of raw material faced low demand

8- prices of raw material dipped

9- The demand curve shifted to left

10- supply curve also shifted to left

for competitive markets are

1- School Uniform-

Buyers - students and schools

suppliers- tailors, garment manufactures

demand and supply shifted to left due to shhutting down of schools during pandemic

2- school outdoor sports equipment-

buyers-

students and schools

suppliers- sellers & manufactures

demand and supply shifted to left due to shhutting down of schools during pandemic

3- Stationery-

students and schools

suppliers- sellers & manufactures

demand and supply shifted to left due to shutting down of schools during pandemic

4- Canteen supplies

students and schools

suppliers- Grocery stores and manufacturers

demand and supply shifted to left due to shhutting down of schools during pandemic