Answer to Question #284452 in Microeconomics for tam

Question

The current Covid-19 pandemic has affected various economic sectors around the world. 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

The two products are Automobiles and International Flights

When the pandemic came due to an economic downturn, the demand for automobiles declined as buyers were not able to buy as before and thus the quantity demanded decreased as shown above from D₀ to D₁.

With the pandemic, most flight operating companies were not able to offer flight services due to the lockdowns instituted by most governments, and hence the supply reduced shifting the supply curve from S0 to S1 and hence the quantity reduced.