Answer to Question #174744 in Microeconomics for shreshth kinger

Question

During COVID-19 pandemic the Ayurvedic medicine have an in elastic demand and electronic device have an elastic demand imagine the technology advancement double supply of both product i.e. quantity supplied at each price is twice as it was earlier what will be the aquarium price and quantity in each market which product experiences a larger change in price and which product experience in larger change in quantity

Answer 1

The medicine has an inelastic demand as opposed to electronic devices because off the pandemic. In this case, due to the possibility of lockdown and social distancing, most people have resorted to technological advanced devices so as to maintain conversations with peers, family and friends. Moreover, the use of Ayurvedic medicine is not that much inclined towards treating/fighting the pandemic, thus there is demand inelasticity. For, electronic devices, prices will go up as it is needed during this period as opposed to the medicine which is not needed in this pandemic. Therefore, Ayurvedic medicine will have low prices as opposed to electronic devices which will be in demand, from schools, work places, government officials and much more.