Answer to Question #206041 in Microeconomics for Mikayla

Question

Discuss the impact the hard lockdown had on perfect market

Answer 1

The hard lockdown led to shortage in terms of supply and labour within the perfect market. It led to other operations reducing their labours, hence affecting productivity in the respective firm. Due to less productivity, there was differences within the perfect market, where other firms take advantage of the situation within the disadvantaged firm. However, demand and Supply within the perfect market generally decreased.