answered: 3.Let us say that you find out that demand has been increasi
3.Let us say that you find out that demand has been increasing and supply has been decreasing. So, the demand curve has been shifting to the right and the supply curve to the left. Economic theory (our demand and supply curves) tells us that both shifts imply that prices should be increasing. Now you go to the data, (that could be from the website of the firm or your personal observation or again a newspaper or magazine article) and see if in the data prices of this product have been increasing. If yes, then data supports economic theory. If not, then why not? What do you think? What has been the effect of COVID-19 on demand and supply for this product?
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