Question 1 COVID 19 has severely affected the world’s economy. Briefly explain the impact on the economy, using the following concepts: a. Demand and Supply of essential goods b. Price elasticity of...

ECONOMICS
Table of Contents
Q1.    4
a.    4
.    4
c.    4
d.    4
Q2.    5
a.    5
.    5
Q3.    6
a.    6
.    6
c.    6
d.    6
Q4.    6
a.    6
.    6
c.    7
d.    7
Q5.    7
a.    7
.    7
c.    7
Q6.    7
a.    7
.    8
Q7.    8
a.    8
.    8
Q8.    8
a.    8
.    8
References    10
Q1.
a.
As the occu
ence of the covid-19 complements with the lockdown phase and due to that, people became panicky and started buying goods in bulk; therefore, Balleer et al. (2020) have explained that the price of the necessary goods rose due to this. Both the demand and supply of the essential goods in covid 19 rose.
.
The price elasticity of the sanitiser was elastic before and after the corona virus
eakdown. Before the corona virus, it is only medical store and the few hospitals that have sanitisers but after the covid, every store and at every corner shop started having sanitiser. As stated by Paul and Chowdhury (2020), the price of sanitiser was elastic before covid and after covid is, became inelastic.
c.
The estimation of the GDP of a nation covers both private and government expenditure, government outlays, expenditures, private inventory acquisitions, building costs charged and the foreign balance of trade. (A value is applied to imports and exports are deducted).
d.
The sharp downturn of the economy in the second half should stand to reason, considering COVID-19's distu
ance. When the economy opened up again, corporations started to adapt to changing circumstances. For some industries, the new normal has proved more daunting than others have.
Q2.
a.
Oke, Aigbavboa and Dlamini (2017) have described that both for the sellers and buyers, ca
on trading by Profits from Trade may be more valuable than a simple ca
on-capping plan. Consider the two countries in Europe, such as Sweden and Germany. Either each could decrease all the pollution needed on their own, or they can choose to start trading on the marketplace. Suppose that Germany is capable of reducing its CO2 at a much lower cost than Sweden, that is MACS > MACG, where Sweden's MAC graph has higher slope than Germany's curve and RReq is the maximum sum of pollution that a nation wants to eliminate. The MAC curve for Germany is on the left side of the line. RReq is the sum of decreases needed for Germany, but the MACG slope at RReq did not overlap the CO2 (business permit price = P = λ) business emissions permission price. Thus, given the economic price of CO2 expenses, if Germany reduces more emission levels than needed, Germany has the possibility to profit.
The effective allocations resulting from trading are represented by the two R * (on both graphs).
Germany: sold pollution authorisations (R *-RReq) to Sweden at price per unit P.
Sweden obtained pollution permits at the unit price P from Germany.
.
Europe and Switzerland are the two countries.
Q3.
a.
Yes, it is possible, if we compare GDP Growth rate over time sessions, if inflation is present, nominal GDP growth...