Application of the Supply-and-Demand model

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Pick one product (for example, vegetable oils) and use the Supply-and-Demand model to explain why the price of this good has increased dramatically in the COVID-19 pandemic. Make sure to include the three steps listed below in your explanation. When analyzing how the event affects the equilibrium in a market, we proceed in three steps. 1. Decide whether this event shifts the supply or demand curve. 2. Decide in which direction the curve shifts. 3. Use the demand-and-supply model to see how the shift changes the equilibrium price and quantity (i.e., to figure out the new market equilibrium).

Economics

Typing

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