Answer to Question #279883 in Microeconomics for Prey

Question

How is the pandemic,covid-19 greatly affects our country in terms of the following

a.)prices of goods & service

b.)selling modalities

c.) consumer behavior

Answer 1

a) Covid-19 has led to increase in prices of goods and services. For instance, some industries had to be closed during lock down. This lead to scarcity of goods and services, hence prices increases.

b) The pandemic has also affected the selling modalities since companies and buyers have been advised to shop goods online. However, internet marketing may fail to reach as many customers as possible since not everybody has the knowledge about shopping online. Thus many firms have high chances of making a loss.

c) Covid-19 has also changed the consumer behaviour since customers have opted to buy cheap goods and services as shortage of money comes in due to loss of jobs. Moreover, the consumers have decided to purchase healthy foods that aims to boost immunity hence lower chances of suffering from the disease.