HOW COVID-19 WILL CHANGE THE WORLD
HOW COVID-19 WILL CHANGE THE WORLD by FINANCIAL TIME
Author: Martin Wolf
Issue: June 16, 2020
https://www.ft.com/content/9b8223bb-c5e4-4c11-944d-94ff5d33a909
In this news, we can conclude that the coronavirus has a significant impact. The coronavirus that emerged in December in China became the most significant change for all developing and developed countries. It only takes a short time, and the coronavirus has affected the world economy. Although the economic crisis occurred in 1930, it seems to have an authentic effect on the present. Which preceded the problem of the cold war between China and the US, then COVID 19 out.
This virus affects the whole world because of its inability to survive. Even more, companies that have a harder effect, because what we understand are very dependent on physical contact between sellers and buyers.
The buster collapsed. Significant losses were everywhere, which made the country have a higher debt deficit. With this, we, as humans, await a vaccine that is said to be able to control this pandemic.
The harsh world like today makes everyone ask when this is all over, is the world after the pandemic? With everything virtual, technology adoption promises to improve with China at the helm. On the other hand, the existence of politics that has a conflict between nationalists and protectionists, this side will fight for what the state must do decisively.
Not to forget the growing debt deficit, although there is a little dispensation for savings in public spending. Ultimate reality, a case that has been said that international relations are not right; we can see friction between China and America.
With so many adverse effects happening, is there the afterlife as usual? It seems that technology is now under political influence. How destroyed international relations have led to widespread hostility, especially in China and the US. How much has the crisis progressed? With this, the world should be able to move earlier than it should.
The Coronavirus outbreak has affected daily life. Corona has influenced daily life, and nowadays, fewer people are traveling out of the House since the Government recommends doing all the House activities. Then it has an impact on business continuiHousend One reason is: consumers rarely go out, only shop as necessary, and make various transactions online. All activities related to ‘interaction’ between humans are a particular concern for the community. Besides, social restrictions also cause various business activities to be done remotely. Thus, many workers have to work from home (work from home). For example, just buying and selling in the market, because the fewer people come out of the House, the fewer people shop at the market.
The level of consumers has decreased by tens of percent in some arHouseThis causes some producers in the market to reduce expenses by encouraging their employees to take time off. If it takes place in the long run, the worst-case scenario can happen. They are starting from the enactment of termination of employment (layoffs) to close down.
This news included in the Law of supply and demand where demand is decreasing, and the supply is fixed. Previously, The Law of supply and demand will be discussed. The supply and demand law explains how a resource seller interacts with a buyer for that resource. This theory explains the implications of the relationship between the supply of a commodity and the price of demand.
The four fundamental laws about supply and demand are:
- When demand rises, and supply stays constant, the outcome would be a higher equilibrium price and a higher volume
- If demand falls and supply stays unchanged, this leads to lower prices of equilibrium and lower quantities.
- When supply rises and demand stays constant, it results in lower prices for the equilibrium and higher quantities.
- If supply declines and demand stays constant, higher equilibrium prices and lower quantities will result.
Thus supply and demand can make a price balance. Because the price balance is the price at which producers can sell all units they want to produce, and buyers can buy all units they want. For example, at a certain point in time, Deliveries of goods brought onto the market are fixed. In other words, the supply curve is a vertical line in this case, whereas the demand curve is always downward sloping due to diminishing marginal utility laws.
Many factors influence supply and demand.
Factors That Affect the Bid
Production capacity, production costs such as labor and materials, and the number of competitors directly affect how much business supply can be made. Supporting factors such as material availability, weather, and supply chain reliability can also affect supply.
Factors That Affect Demand
The number of substitutes available, consumer preferences, and changes in complementary product prices affects demand. For example, if a video game console goes down, the demand for that console can increase because more people buy consoles and want games.
From the news above, the presence of coronavirus makes an external effect that affects the supply curve. A fixed supply curve, but the demand curve decreases, the equilibrium price will go down, and the amount of equilibrium will also decrease. COVID-19 makes economic agents face uncertainty, so consumers and companies will tend to “wait and see” in their economic decisions or withhold their consumption and investment activities; this will make the aggregate demand decrease.