Answer to Question #284253 in Microeconomics for Wendy

Question

Choose two (2) examples of consumer goods and services in the output market that has a clear impact due to the pandemic. The examples of the goods and services could be either from the buyers’ side or the sellers’ perspective. Illustrate and explain your answers with the help of diagrams (pre-pandemic and during pandemic).

Answer 1

1) Petroleum oil and clothing industry (Second hand clothes)

Immediately after Covid 19 came in, governments started locking their countries and companies started shutting down beginning with international flights. People started staying at home and this led to them having less demand for oil for their vehicles. On the other hand, second hand clothes stopped being supplied because they were seen as the spreading zones for Covid 19.

Thus, their curves shifted downwards drastically both in terms of supply and demand.