Question

Using the concepts of demand function, demand curve and shifters explain the very important changes in oil demand curve caused by the Coronavirus pandemic.

Answer 1

Demand function tells us that how the demand of any commodity depends on the various factors, such factors are pirce of the commodity, price of the other subsitutte goods , income of the consumers , taste and preference , natural disaster ,etc. all these factors determine the quantity demanded of a commodity.

A change in oil demand curve which is caused by the Coronovirus pandemic is that, the quantity demanded of oil has been fall at each price level because of the natural disaster Coronovirus thats leads to sharp fall in the price of oil .as the demand fall and the supply remains the same. therefore we can say, the demand curve for oil has been shifted to left says that oil demand has been fall at all price level .