Question

Draw a supply and demand curve that explains the current demand/supply of PPE amidst the coronavirus...

Draw a supply and demand curve that explains the current demand/supply of PPE amidst the coronavirus pandemic. Is the quantity supplied increasing or decreasing to match the demand? explain.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

In the current market, Supply of PPE is less compared to the higher demand. As these PPE's are inelastic in nature, hence the slope of the supply curve is a bit steeper. As a result, prices are higher.

Now, to meet the quantity demanded, the supply curve as shown in the figure (S1), will need to shift to the right (S2). This increases the quantity supplied from Q to Q1 to meet the market demand.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply...
(a) Draw a Supply Curve and the Demand Curve for the Milk market. Label the supply S1 and the demand D1. Label the vertical axis P for Price and label the horizontal axis Q for Quantity of Milk. Label on the vertical axis the equilibrium price as P1. Label on the horizontal axis the equilibrium quantity as Q1. Assume now that the price of Breakfast Cereals has increased by 200%. (b) Would the Supply Curve for Milk increase, decrease or...
(i) Draw and label a supply and demand diagram with a short run supply curve. (ii)...
(i) Draw and label a supply and demand diagram with a short run supply curve. (ii) Shift out the demand curve and show the short run effect on output and price. (iii) Show the long run effect on price by drawing a second short run supply curve. Use this short run supply curve to trace out the position of the long run supply curve. Do (i), (ii) and (iii) for a. a constant cost industry and b. an increasing cost...
Draw a supply curve where the quantity available is fixed – producers in the short run...
Draw a supply curve where the quantity available is fixed – producers in the short run can not change the quantity supplied. What happens if populations increases. Show on a diagram and explain.
Draw a perfect competition graph include: a. Demand Curve . b. Supply Curve . c. Identify...
Draw a perfect competition graph include: a. Demand Curve . b. Supply Curve . c. Identify where marginal revenue and marginal cost intersect . d. Identify the profit maximizing quantity.
Consider a simultaneous shift of both the demand curve and the supply curve. Before the shift,...
Consider a simultaneous shift of both the demand curve and the supply curve. Before the shift, the market equilibrium is at a point where the price is 6 and the quantity is 25. Also, before the shift, with each additional unit increase in price, the quantity supplied increases by 5 and the quantity demanded decreases by 5. Now, due to a change in some government policy, the demand increases by 10 at all price levels. At the same time, the...
A supply curve shifts because: I. A determinant of demand has change II. A determinant of...
A supply curve shifts because: I. A determinant of demand has change II. A determinant of supply has changed III. The quantity supplied has changed IV. The price has changed If the marginal product is equal to the average product, then: I. Average product is not changing II. Marginal product is increasing III. Marginal product is decreasing IV. Average product is increasing The extra revenue generated from one additional unit of labor; I. Marginal-revenue product of labor II. Marginal revenue...
Using the concepts of demand function, demand curve and shifters explain the very important changes in...
Using the concepts of demand function, demand curve and shifters explain the very important changes in oil demand curve caused by the Coronavirus pandemic.
1. What are the impacts of the COVID-19 (Coronavirus) pandemic on aggregate demand, aggregate supply, and...
1. What are the impacts of the COVID-19 (Coronavirus) pandemic on aggregate demand, aggregate supply, and equilibrium real GDP in the United States?
Assume that bad weather shifts the supply curve for pineapples along the demand curve to the...
Assume that bad weather shifts the supply curve for pineapples along the demand curve to the left which increases the pineapple price to $2.53/pineapple. If the original equilibrium price of pineapples is $1.15/lb and the original equilibrium quantity is 1,455,300 pineapples, the elasticity of pineapple supply is 0.85 and the elasticity of demand is -0.15, what is the new equilibrium quantity demanded of pineapples? What is the new equilibrium quantity supplied?
Assume that advertising shifts the demand curve for jeans to the right along the supply curve...
Assume that advertising shifts the demand curve for jeans to the right along the supply curve which pushes the jean price up by 125%. If the old equilibrium price of jeans is $8.76/pair and the old equilibrium quantity is 230 million pair, the elasticity of jean supply is 0.60 and the elasticity of demand is -0.766, what is the new equilibrium quantity demanded of jeans? What is the new equilibrium quantity supplied?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT