The measures taken to combat COVID have caused supply to drop globally. What are the affects of this and what should be done about it?

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section5.3: Three Applications Of Supply, Demand, And Elasticity
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The measures taken to combat COVID have caused supply to drop globally. What are the affects of this and what should be done about it?

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The sudden increase or decrease in the supply of the commodity in an economy that results in a sudden rise in price or sudden decrease in the price of the commodity is called the supply shock.

 

 

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