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The ideas of supply and demand are very essential to finances, as they are the backbone of market economy. Demand is the competence or the enthusiasm of a consumer to buy manufactured goods at a particular price and given time. The total demanded relate to quantity of the good and services the customers are ready to buy. Demand is recorded on a demand plan, and then plotted on a chart known as a demand curve which goes downwards. The mark stands for the link between cost and the quantity demanded. The quantity demanded is referred to the total of manufactured goods people are ready to buy at a definite price.

This link flanked by price and quantity demanded is called demand relationship. The law of demand states that while all other factors do not change, if a product is sold at a higher price, less people will ask for that commodity, in other terms, the higher the price of a commodity, the lower the amount demanded, and the inferior the price, the higher the quantity demanded. Consumers do not obtain large quantity of products when prices are high. This is because as the price of a product goes up, even the chance of buying the good is up. As a result buyers will naturally avoid buying a commodity that will make them to give up the spending of something else which is more vital. In standard, each customer has a demand curve for any commodity that he decides to buy. The buyer’s demand curve is equal to the trivial utility curve. After adding up all the buyers’ curves, they end up making the market demand curve for that commodity.

Supply indicates how much the sellers can offer to their buyers. The quantity supplied refers to the total amount of certain commodities producers are enthusiastic to supply to their consumers at a certain price. The connection between the amount of commodities supplied to the market and the price they are sold at is called supply association. Price is thus a reflection of demand and supply. The law of supply indicates that the higher the price of a product, the higher the supply, and vice versa. Producers of commodities tend to supply more goods at a higher price because they’ll be selling at a higher profit or increased revenues. Supply involvement is a factor of time unlike the demand relationship.

Time is critical to supply because suppliers must adjust to the situation whenever there is a change in demand and price. For example, if there is increase in the demand and price of umbrellas in an unforeseen rainy season, suppliers may hold demand by using their making equipment more rigorously. However, if there is a climate change during the year, and the umbrellas will be needed, the change in demand and price will stay for long thus the suppliers will have to change their gear and making facilities to meet the lasting level of demand.

Supply and demand have relationship, and affects price in different manners. For example, if a certain item is costing very higher, the demand will decrease, and if the suppliers find an item has a high demand, they will increase its volume of production, and the selling price will go up. However, if demand and supply are equal, they are at equilibrium. Equilibrium refer to the price at which the amount demanded by the buyers and the amount that the firms are capable of supplying goods and services are equal. In other words, the total commodities supplied is equal to the total commodities demanded therefore every person is satisfied with the recent economic situation. When supply and demand is equal, it is said to be at equilibrium; however, if the supply exceeds demand, demand exceeds supply, or the two are not balanced, there said to be points of disequilibrium.

Without a shift in demand or supply the market price will remain the same. A shift of demand or supply curve occurs when the amount of product’s demanded or supplied changes even though the price remains the same. Shift occurs due to certain factors rather than price. For example, the price of cooking oil is $4 and the amount of a certain type of cooking oil demanded increased from quantity 1 to quantity 2, there will be a shift in the demand for a certain type of cooking oil. Shifts in the demand curve means that the original demand connection has changed; this shows the quantity demanded has been affected by another factor and not the price. A shift in the demand connection would occur, if for instance, suddenly that type of cooking oil is the only type of cooking oil which is available in the market. There are other factors which might lead to a shift in demand curve these may include; if a substitute of a certain product increases its price or a complement of that commodity lowers its price. The consumers may as well want to change their tastes and preferences in favor of the product.

On the other hand, if the price for cooking oil was $4 and the amount supplied went down from Q1 to Q2, then there would be a shift in the supply of cooking oil. This will show that the previous supply has changed. This shows the amount supplied is affected by various factors other than the price. A shift in the supply curve would occur due to; for example, there might be a natural disaster which will cause the shortage of raw materials used to produce cooking oil thus there will be less supply. There other factors which may source a move in the supply arc, and these may include; development in the production technology will lead to high output and competence in the production process thus the supply will increase and lower the cost for businesses. Favorable climate will also lead to higher yields for agricultural commodities.

Supply and demand is a basic feature in determining the character of the marketplace. This is because it is known to be the main determinant in location up the cost of commodities and services. The availability or the supply of commodities or services is a main indication in knowing the price at which those commodities or services can be obtained. For example, an industry giving some services but has not much competition in the area will be able to control the price than will an industry working in a highly spirited location. Accessibility establishes the pricing structures in the marketplace; however, demand must also be there.

For example, an industry may produce vast number of a product at a low cost, but if there is little or no demand at all for the manufactured goods in the marketplace, the manufacturing will have no alternative but to sell the manufactured goods at a very low price. On the other hand, if the marketplace shows friendly to the manufactured goods that is being sold, the industry can set up a higher cost for the product. This demonstrates that supply and demand are closely entangled economic perceptions. Definitely, this shows how supply and demand is regularly mentioned as among the majority basic in all of economics.

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Supply and demand is a basic feature in determining the character of the marketplace. This is the major determinant in setting up the cost of commodities and services. The law of demand equates extra things, as the price of a commodities rises, its quantity demanded falls.

Demand can be signified as the quantity of a product or service which is required by consumers, while the quantity demanded can be defined as the amount of a manufactured goods customers are willing to buy at a particular price; the two(demand and quantity demanded ) defines a demand relationship.

Supply is what the market can offer. The quantity supplied is the quantity of goods producers are willing to supply at a particular price. The law of supply states that the higher the price of a commodity, the higher the supply, and vice versa.

Supply and demand have relationship, and affects price in different ways. However, they are they are believed to be at equilibrium when both demand and supply are equal. However, if the supply exceeds demand, demand exceeds supply, or the two are not balanced, there said to be points of disequilibrium, resulting to shift.

A shift of demand or supply curve occurs when the amount of product’s demanded or supplied changes even though the price remains the same. Shift occurs due to certain factors rather than price. In demand, if a substitute of a certain commodity increases its price or a complement of that commodity lowers its price. The consumers may also want to alter their tastes and preferences in favor of the product. In supply, there other factors which may cause a shift in the supply curve, and these may include; improvement in the production technology will lead to high output thus the supply will increase. Favorable climate will also lead to higher harvest and the supply will be high.

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Demand and Supply in Macroeconomics and Microeconomics

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Laws of Supply and Demand The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the amount of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good. Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods. When a suppliers' costs changes for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing corn so that the cost of corn that can be grown for a given quantity will decrease. Basically producers will be willing to supply more corn at every price and this shifts the supply curve outward, an increase in supply. This increase in supply... ... middle of paper ... ... Also important is the price of complements, or goods that are used together. When the price of gasoline rises, the demand for cars falls. In conclusion, generally speaking the Law of Supply states that when the selling price of an item rises there are more people willing to produce the item. Since a higher price means more profit for the producer and as the price rises more people will be willing to produce the item when they see that there is more money to be earned. Meanwhile the Law of Demand states that when the price of an item goes down, the demand for it will go up. When the price drops people who could not afford the item can now buy it, and people who are not willing to buy it before will now buy it at the lower price as well. Also, if the price of an item drops enough people will buy more of the product and even find alternative uses for the product.

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Laws of Supply and Demand

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The market price of a good is determined by both the supply and demand for it. In the world, today supply and demand are perhaps one of the most fundamental principles that exist for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve.

In demand the schedule is depicted graphically as the demand curve which represents the number of goods that buyers are willing and able to purchase at various prices, assuming all other non-price factors remain the same. The demand curve is almost always represented as downwards-sloping, meaning that as price decreases, consumers will buy more of the good.

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Just as the supply curves reflect marginal cost curves, demand curves can be described as marginal utility curves. The main determinants of individual demand are the price of the good, level of income, personal tastes, the population, government policies, the price of substitute goods, and the price of complementary goods.

When a supplier’s cost changes for a given output, the supply curve shifts in the same direction. For example, assume that someone invents a better way of growing corn so that the cost of corn that can be grown for a given quantity will decrease.

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Basically, producers will be willing to supply more corn at every price and this shifts the supply curve outward, an increase in supply. This increase in supply will cause the equilibrium price to decrease. The equilibrium quantity increases as the quantity demanded increases at the new lower prices. This causes the price and the quantity to move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

A sudden increase or decrease in the supply of a particular good is also known as a supply shock. A supply shock is an event that suddenly changes the price of a product or service. This sudden change affects the equilibrium price. The two types of supply shocks that exist are the Negative Supply shock and the Positive Supply shock. A negative supply shock, which is a sudden supply decrease, will raise the prices and shift the aggregate supply curve to the left. A negative supply shock can cause stagflation due to the combination of rising prices and falling output. Meanwhile, a positive supply shock, an increase in supply, will lower the price of a good and shift the aggregate supply curve to the right. A positive supply shock could be an advancement in technology which most certainly makes production more efficient which thus increases output. For example, a positive supply shock could be shown in the early 1990s when communication and information technology exploded which resulted directly in productivity increase, and an example of a negative supply shock would be that of the high oil prices associated with the Arab oil embargo of the early 70s is the classic example of this occurrence. Any other factor could also produce this effect. Such as if the sudden doubling of the Federal minimum wage and all being equal could cause a supply shock.

Occasionally, supply curves do slope upwards, for example, the backward bending supply curve of labor. As a worker’s wage increases, that worker is willing to supply a greater amount of labor since the higher wage increases the marginal utility of working. The backward bending supply curve has also been observed in non-labor markets such as the market for oil. During the 1973 oil crisis, many oil-exporting countries decreased their production of oil. Also in some cases, the supply curve can be vertical. This represents that the quantity supplied is fixed, no matter what the market price is. For instance, the surface area of the land of the world is fixed. It does not matter how much someone would be willing to offer for an additional piece, the extra piece cannot be produced, and vice versa, even if no one wanted the land, it still would exist. The land, therefore, has a vertical supply curve, giving it zero elasticity. It does not matter how much the change in price is, the quantity supplied will not change regardless.

One of the most important building blocks of economic analysis is the concept of demand. The most famous law in economics, and the one that economists are most sure of, is the law of demand. The law of demand states that when the price of good rises, the amount demanded falls, and when the price falls, the amount demanded rises. When economists refer to demand, they usually have in mind not just a single quantity demanded, but what is called a demand curve. A demand curve traces the quantity of a good or service that is demanded at successively different prices.

Some of the modern evidence for the law of demand is from econometric studies which show that all other things being equal, when the price of good rises, the amount of it demanded decreases. How do we know that there are no instances in which the amount demanded rises and the price rises? A few instances have been cited, but they almost always have an explanation that takes into account something other than price. Nobel Laureate George Stigler responded years ago that if any economist found a true counterexample, he would be “assured of immortality, professionally speaking, and rapid promotion.” And because wrote Stigler, most economists would like either reward, the fact that no one has come up with an exception to the law of demand shows how rare the exceptions must be. But the reality is that if an economist reported an instance in which consumption of a good rose as its price rose, other economists would assume that some factor other than price caused the increase in demand.

The main reason economists believe so strongly in the law of demand is that it is so plausible, even to non-economists. Indeed, the law of demand is ingrained in our way of thinking about everyday things. Shoppers buy more strawberries when they are in season and the price is low, such an event is evidence for the law of demand because consumers are only willing to buy the higher amount available at the lower in-season price. Likewise, when people learn that frost will strike orange groves in Florida, they know that the price of orange juice will rise. The price rises in order to reduce the amount demanded to the smaller amount available because of the frost, this is another example of how the law of demand exists in the market economy. We see the same point every day in countless ways. No one thinks, for example, that the way to sell a house that has been languishing on the market is to raise the asking price, because the number of potential buyers for any given house varies inversely with the asking price. Indeed, the law of demand is so ingrained in our way of thinking that it is even part of our language. Think of what we mean by the term on sale. We do not mean that the seller raised the price. We mean that he or she lowered it. The seller did so in order to increase the number of goods demanded.

Economists have struggled to think of exceptions to the law of demand, although marketers have found a solution. Economist Thomas Nagle points out that when one particular car wax was introduced, it faced strong resistance until its price was raised from $.69 to $1.69. The reason, according to Nagle, was that buyers could not judge the wax’s quality before purchasing it. Consumers believed that the quality of this particular product was so important that it was not worth having a bad product that could ruin a car’s finish. Consumers “played it safe by avoiding cheap products that they believed were more likely to be inferior.”

As for many non-economists, they have become skeptical of the law of demand. A standard example usually illustrated is that of a good whose quantity demanded will not fall when the price increases, such as water. How, they ask, can people reduce their use of water? But those who come up with that example think of drinking water or using it in a household, as the only possible uses. Even for such uses, there is room to reduce consumption when the price of water rises. Households can do larger loads of laundry, or shower instead of bathe, for example. The main users of water, however, are agriculture and industry. Farmers and manufacturers can substantially alter the amount of water used in production. Farmers, for example, can do so by changing crops or by changing irrigation methods for given crops.

There are many influences on demand such examples are that it is not just price that affects the quantity demanded, income as well affects it. As real income rises, people buy more of some goods, which economists call normal goods, and less of what is called inferior goods, such as urban mass transit and railroad transportation. That is why the usage of both of these modes of travel declined so dramatically because postwar incomes were rising and more people could afford automobiles. Environmental quality is a normal good, which is a major reason that Americans have become more concerned about the environment in recent decades. Another influence on demand is the price of substitutes. When the price of a car, let’s use the Toyota Tercel, for instance, rises and all else being equal the demand for Tercel falls while the demand for a Nissan Sentra, a substitute rises. Also important is the price of complements, or goods that are used together. When the price of gasoline rises, the demand for cars falls.

In conclusion, generally speaking, the Law of Supply states that when the selling price of an item rises there are more people willing to produce the item. Since a higher price means more profit for the producer and as the price rises more people will be willing to produce the item when they see that there is more money to be earned. Meanwhile, the Law of Demand states that when the price of an item goes down, the demand for it will go up. When the price drops people who could not afford the item can now buy it, and people who are not willing to buy it before will now buy it at the lower price as well. Also, if the price of an item drops enough people will buy more of the product and even find alternative uses for the product.

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The Law of Demand and Demand Factors Essay

Introduction, the law of demand, factors affecting the demand of commodities.

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People often exercise choice because human wants are infinite while the resources available are scarce. For the satisfaction of human wants to occur, there must be a relationship between the production of commodities and their corresponding pricing system. In the market, the forces of demand and supply determine the prices of goods and services. At the same time, the prices of goods and services affects demand and supply (Suri, 2011). In ordinary terms, demand refers to desire or urge of purchasing commodities. In economic terms however, demand is something beyond a plain desire. Demand in this sense represents a want supported by the power or capability to purchase.

The law of demand asserts that all other factors kept constant, the price and quantity demanded are inversely proportional. For instance, a company selling snacks may sell approximately 100,000 cookies at $1 each. If the company decreases the price of its cookies to $0.75 each, the number of cookies sold may increase to 115,000. On the other hand, if the company decides to increase the price per cookies to $1.25, the number of cookies sold may reduce to approximately 85,000. This can only apply when all other factors like customer preference are constant (Saint-Leger, 2011). In this regard, there are various assumptions made in relation to the law of demand for the establishment of the price-demand relationship. These assumptions include assuming that the income of consumers does not change, there are no changes in preferences and tastes of consumers, prices of other goods remain constant and there are no changes in the size and composition of the consumer population (Akrani, 2009). A demand curve clearly represents the effect of price on the quantity of goods and services demanded. In the demand curve, the quantity demanded lies on the horizontal axis while the price lies on the vertical axis. Any change in the price causes a shift along the demand curve. However, there are other factors that can cause a shift in the demand curve other than price. These may include price alterations for complement goods, consumer demand for alternate goods and customer preferences (Saint-Leger, 2011). Even though it is evident that quantity demanded changes as price of commodities changes, such a change varies from commodity to commodity. This means that the amount of change is not constant for all commodities. In this case, some goods and services respond more to changes in price while others respond less. Elasticity of demand explains the extent of the responsiveness of quantity demanded in relation to changes in price. This means that the elasticity of demand explains further the relationship of price and demand (Akrani, 2009).

There are various factors that affect the demand of goods and services. The major factor is price of goods and services. In most cases, the quantity of a product purchased by a customer depends on the price of that particular commodity. In this case, people are less willing to purchase a commodity when the price of such a commodity increases. On the other hand, customers will purchase a certain commodity in large volumes if the price of the commodity reduces (Sothern, 2011). Another factor that influences the demand of commodities is of the size of the income of customers. In general, consumers will buy more when their income increases and buy less when their income reduces. As the income of some people increase, their consumption increase causing an increase in the demand for various commodities. For the goods which are superior and of good quality, the increase in income causes increase in their demand. On the other hand, demand for inferior goods reduces with increase in income levels (Suri, 2011). The number of buyers at a specific time also influences the demand for goods and services. For instance, the demand for stationery increases during the periods when the schools are opening. In addition, there is an increased demand for clothes and playing dolls for children during the holidays especially the Christmas period. The demand for these goods however reduces when the holidays are over (Sothern, 2011). The black Friday is a very important day in America, which influences the demand for commodities. Economists site this day as the most important day of the year for the economy of United States. During this day, Americans flock in the shopping malls to purchase items and commodities for the Christmas celebrations. During this time, the demand for various commodities like electronics, children playing items and clothes increase heavily. In addition, most traders reduce the prices of some commodities during this day causing the demand to increase further. According a survey by the National Retail Federation (NRF), some 152 million people purchase heavily discounted commodities during this day (Washington, 2011).

The law of demand is an important concept in economics. It explains the relationship between the quantity of goods and services demanded and other factors including price, preferences, income and number of buyers. Business owners and companies should take time to understand the law of demand and comprehend the various factors that may increase demand for their products. This will help them to maximize their sales since they will perfectly understand the market during specific periods. The understanding of the law of demand is also useful in determining the quantity of supply needed for a particular commodity.

Akrani, G. (2009). Demand in Economics: Law of Demand and Elasticity of Demand . Web. Saint-Leger, R. (2011). The Determinants of Demand That Will Shift the Demand Curve . Web. Sothern, M. (2011). What Are the Factors Affecting Demand Economics? Web. Suri, S. (2011). Seven Factors that influences the Demand for a Commodity . Web. Washington, J. S. (2011). Black Friday: Most important day of the year for the US economy . Web.

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It is important to comprehend the critical idea of Demand versus Quantities Demanded prior to examining different hypotheses of financial aspects. The law which is working behind the scene and conveys mostly about interest. A law which reveals to us how much interest of a customer or gathering of buyers is being influenced by his/their pay, cost of a specific decent, change in the costs of reciprocal and substitute merchandise, their taste and inclinations, and others.

The critical contrast among demand and quantities demanded is, earlier shows the eagerness and capacity of an individual to buy great while later one shows the quantities somebody needs to purchase at a specific cost. Demand address or characterize the solitary the eagerness and moderateness of customer for any monetary great. It gives the rundown of quantities which would be bought at an alternate value level. Quantity demanded address or characterize the specific measure of good demanded by the customer on a particular value level. It gives the genuine quantities which is demanded at a particular cost. Demand prompts an increment or the lessening in the interest bend while Quantity demanded prompts grow or contract the interest bend.

The following graph illustrates the example where the Demand Curve for carrots depending on its price. It can be seen that as the price grows the demand for the good lowers (yellow curve). There is also an outside factor in the form of supply price, which as it falls decreases the quantity demanded. Thus, there is shift to the left (blue curve) as the substitute price goes downward. The rise of other factors such as population preferences and income similarly affect the demand curve.

The measure of supply of an item in the market is a fundamental factor for the monetary equilibrium of a space. Supply is the assigned name for the measure of items or administrations that are to be given by a specific organization to a market. The stock is represented in an inventory bend and in a chart for improvement and delineation of the connection among costs and quantities all the more plainly. It incorporates every one of the potential costs and potential quantities that are accessible.

Quantity Supplied is the name for a particular point in the stockpile bend. It outlines the sum or quantities that will be accommodated a specific market cost. The contrast among supply and quantity supplied is that supply is the principle fundamental subject of financial matters, though quantities supplied is a point in the field of supply. Supply covers every one of the costs and every one of the quantities accessible on the lookout, and quantity supplied alludes to a particular cost and numbers of good.

The illustration below represents the supply curve (yellow curve) of the carrots’ price change according to the quantities. The outside factor chosen as an example is the use of a new technology which kills insects and lets the carrots grow, hence, increases yields. Thus, the supply curve is shifted to the right (blue curve). Some factors including positive predictions on the price and substitute price increase will affect the curve in the similar manner.

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Supply and Demand During Covid-19

The World Health Organization has declared the COVID-19 (Corona Virus) a global pandemic. The COVID-19 outbreak has affected the majority of businesses across the globe. This includes both small and large business enterprises as well as the global market at large. The price of commodities has risen due to the decrease in their supply. Some of the basic commodities have gone out of stock while others are still available but in small amounts. Being a worldwide pandemic, every economy has been highly affected. The medical sector has been extremely affected as every country focuses on employing more health workers in an attempt to curb the spread of the virus. Research shows that most there is panic buying has been experienced in most countries across the globe. Vulnerable populations are at higher risk of these shortages due to socioeconomic inequalities. This paper, therefore, will discuss the impact of the COVID-19 on supply and demand theories.

Demand relates to how much goods and services consumers can afford at a given period. The law of demand identifies price as the major factor that determines what the customers are able and willing to buy. Other factors include the change in taste and preferences, quality of a commodity, the income of the consumers, and consumers’ expectations of future changes in prices. On the other hand, supply can be defined as the number of goods and services produced by manufacturers in a given period. It can also be defined as the quantity they avail in the market at a given period. Similarly, the amount available in the market by producers depends on how much it costs to produce them. In economics, the supply and demand for commodities are used to determine the market price of these commodities. When the quantity of goods demanded by consumers equals the number of goods supplied, an equilibrium achieved.

COVID-19 pandemic has raised major concerns on issues regarding medical supplies. Pharmaceuticals and medical products have become essential commodities during this pandemic. Ventilators, gloves, masks, gowns, and surgical drapes and hand sanitizers are among the main necessities at this time both for health care workers as well as the public as a whole. According to Gryta, T., & Adams, R. (2020), medical commodities are generally in shortage as it is difficult to import since the virus is across the World, and every government is working on fighting the various at home. Most countries, however, have been forced to start producing them locally. The continuous spread of the virus has increased the demand for testing equipment, ventilators, and other products. As a result, there is a possibility of shortages of these commodities as the virus continues to spread. In other words, the demand for equipment is higher than the supply in the market. The price of these commodities is lower than the equilibrium, thus resulting in excess demand. Excess demand results in more supply of commodities, and this competition leads to lower prices in the market. The lower price of the commodities may lead to low supply, thus a probability of higher prices in the future to achieve equilibrium (VIR, 2020). Also, it is not known how long it will take to curb the virus as no single vaccine has been identified so far. People are therefore flocking in shops and supermarkets as they prepare to fight the coronavirus. Prices of essentials are on the rise as there are shortages in the supply and availability of raw materials. Also, all governments have put in place strict measures in the attempt to stop or reduce further spread of the virus. This includes reduced movements of people, especially through flights (Gryta & Adams, 2020). Flights have been stopped in almost all countries across the globe, making it hard to acquire raw materials and other commodities from other countries. Besides, the virus has now spread in almost all countries in the world. As a result, all businesses have been affected in all countries.

Technological advancement in China makes it the leading country worldwide in the production and supply of commodities (Volkin, 2020). For instance, the high number of infections in the country forced the government to reduce exports of commodities for local use. As a result, countries depending mainly on China’s supplies have been largely affected by this pandemic as they have been left with no option but to depend on the limited resources in the countries.

Furthermore, the virus is spreading at a high rate such that every day, there are newly recorded cases. This means the demand for medical supplies is rising in every 24 hours. The demand for protectives such as masks and hand sanitizers is rapid as people are working on protecting themselves and their families at large. However, this demand is not experienced equally across the countries due to the gap in financial status. According to PYMNTS (2020), consumer behavior has changed as people have now shifted to e-commerce due to lockdowns. This limits the number of businesses on the operation as only a few have enrolled in online business. The financial markets have been greatly affected by the pandemic due to logistics in supplies involved. Despite the high risk of contracting the virus, these essentials remain unaffordable to these individuals; thus, this law does not apply.

Apart from healthcare-related businesses, the COVID-19 pandemic has affected all other businesses across the globe. The mode of transmission of the virus is the main concern, thus the closure of many businesses. For instance, the ban on the use of public transport in many countries has prevented people from going to work. Also, many countries have been on lockdown, while others are initiating curfews forcing people to work from home. This means small business operators cannot work as their businesses require them to be at the workplace for them to be operational (Abedejos, 2020). Also, the shortage of supplies has affected these businesses, forcing most of them to close down. Moreover, most IT companies have been forced to shut, as working from home rule out does not favor them. Also, a majority have reported delays in the delivery of the required tech hardware since the COVID-19 outbreak (Clark, 2020). This constrained supply has left people with no options than to switch to refurbished products. The social distance has also affected other businesses like restaurants. Almost all countries have issued a directive that minimizes the crowding of people in one place. The restaurants have been forced to stop their normal operation and adopt takeaway or online services. Also, most people now avoid eating from these restaurants in fear of contracting the virus. As a result, the demand for food in these restaurants has gone low. Most have been forced to close due to losses incurred and the inability to pay their employees.

In conclusion, the COVID-19 pandemic has affected all businesses across the globe. Despite the government pressures on trying to maintain normal prices of commodities, the scarcity of raw materials ends up raising the price of these commodities. The demand for medical commodities and protectives is in high demand. However, their availability has also been affected as the virus is still spreading. Besides, the curfews and lockdown have also affected the operation of many businesses, especially the small business operators who cannot work from home. The few who are operating have fewer operating hours while a majority can access raw materials or stock. However, the measures put by most governments are helpful despite the effects on these businesses as they will assist in preventing the spread of the virus.

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