due to COVID 1 9 , - 1 9 , some enterprises are forced to shut
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Question:
due to COVID−19, some enterprises are forced to shut down their business. Assume that this is an adverse supply shock, i.e. supply decreases. As a response states are providing income supports to their citizens to boost demand. What would the impact of these events be on equilibrium price and quantitiy?
a− equilibrium price will increase; equilibrium quantity will increase
b− change in equilibrium price is uncertain, equilibrium quantity will increase
c−equilibrium price will increase, change in equilibrium quantity is uncertain
d−changes in both equilibrium price and quantity are uncertain
Related Book For
Complete Business Statistics
ISBN: 9780077239695
7th Edition
Authors: Amir Aczel, Jayavel Sounderpandian
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