due to COVID 1 9 , 1 9 , 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

Question: due to COVID 1 9 , - 1 9 , some enterprises are forced to shut down their business. Assume that this is an

due to COVID

- 19,

some enterprises are forced to shut down their business. Assume that this is an adverse supply shock, i

.

.

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?

-

equilibrium price will increase; equilibrium quantity will increase

-

change in equilibrium price is uncertain, equilibrium quantity will increase

-

equilibrium price will increase, change in equilibrium quantity is uncertain

-

changes in both equilibrium price and quantity are uncertain

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