Answer to Question #214774 in Microeconomics for Angiie

Question

Discuss the impact the hard lockdown had on perfect markets

Answer 1

Within the perfect market, the harsh lockup caused supply and labor scarcity. As a result, other operations reduced their labor, lowering productivity in the company. Due to lower productivity, there were inequalities within the ideal market, with other firms taking advantage of the disadvantaged firm's condition. Within the perfect market, however, demand and supply both fell.