1: Has the outbreak of the coronavirus affected the demand, the supply side of the market or both if we consider the world as one country for the market of gasoline? If it affects both, in what order? (Hint Supply is first affected or demand? Think about what is happening in the city of Wuhan). What has been the impact of this issue on the price of gas? Does this matches your demand and supply response? ( Here, use either shift in demand, shift in supply or both and see the direction in the price change.)

Question2: Using chapter2, How can you describe the outbreak in term of production possibilities frontier? Why? ( Hint:Are we inside the PPF, on the PPF or outside?)

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1 The outbreak of the coronavirus has primarily affected the demand and supply side of the gasoline market Order of Impact Initially the supply side w... View the full answer