Economics

Economics

Table of Contents
INTRODUCTION...........................................................................................................................3
CASE SCENARIO 1.......................................................................................................................3
1. Definition of demand and supply.............................................................................................3
2. Distinction between shift and movement along the demand function.....................................4
3. Explanation of the case scenario using a diagram...................................................................7
4. Impact on equilibrium price of video conferencing software post the COVID-19 pandemic.8
5. Changes in demand and equilibrium price due to COVID-19 pandemic: A Similar scenario 8
Scenario 2.......................................................................................................................................10
COVID 19 outbreak on The Malta International Airport and Malta.........................................10
Scenario 3.......................................................................................................................................16
COVID 19 outbreak unemployment .........................................................................................16
Scenario 4.......................................................................................................................................19
COVID 19 effect on GDP and Government Deficit .................................................................19
CONCLUSION .............................................................................................................................21
REFERENCES..............................................................................................................................21
Maastricht Treaty, 2020. [Online]. Available Through:................................................................22

INTRODUCTION
Concepts of economic involve various concepts such as law of demand, supply and
different other. IN this report various concepts associated with economics would be projected.
Demand and supply concepts of economics will be discussed. Effects on equilibrium price would
also demonstrate due to covid will also explain. Factors affect demand would also be explained
in this report. Market structure of Air Malta would be evaluated. Features and different aspects
of market would be analysis. Impact of COVID 19 over unemployment would be emphasis in
this report. How the pandemic at global level afftected the unem,ployment rate in country would
also project in this report. Furthermore, this report will also project in what ways COVID could
influence gross domestic product of country.
CASE SCENARIO 1
1. Definition of demand and supply
Demand refers to the amount or quantity of goods and services that consumers are able
and willing to buy at a specific price. When a consumer pays for a unit of a particular service or
good using price, total number of units that are bought at that price is called quantity
demanded. Demand and price are inversely related, which means that a rise in price of goods or
services would decrease demand. Supply is amount of goods and services that a producer or
supplier is willing to manufacture or supply at a specific price. Price is consideration that a
supplier receives in exchange for one unit of a service or good. An increase in price always
leads to a rise in quantity supplied, this direct relation between price (Guiso and et.al., 2017).
2. Distinction between shift and movement along the demand function
Demand function is a description of a relationship between a variable and its
determinants. It determines the quantity of goods that is purchased at particular prices or
alternative values due to change in tastes and preferences of consumers, number of customers,
income level of price of related or complementary goods etc.

For example, there has been a huge surge in the demand of video chat and video
conferencing applications. This scenario will be used to explain the movement of shift of the
demand function graphically, indicated by movement and shift of demand curve.
A movement along the demand curve denotes a change in price as well as quantity
demanded from one point to the snother . This movement is implying that demand relationship is
consistent, and this movement happens when the price of video-calling/conferencing apps
Illustration 1: Growth in Videoconferencing apps
Source: Sarah Perez, 2020