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  • Writer's pictureMia Vassallo

How COVID-19 is Impacting Supply and Demand

The COVID-19 pandemic has significantly impacted a number of sectors, and its influence on global markets is evident in economics. COVID-19 has an influence on every aspect of the economy, although it is most noticeable in the supply and demand chain.


Supply Shock

Business closures all across the world have contributed to a tremendous economic shock and policymakers have hurried in an attempt to limit the impact. To many, it appeared to be an obvious supply shock—a word used to describe when an incident disrupts the production of products and services. Multiple businesses have closed as a result of the abrupt impact of newly implemented pandemic measures, resulting in employee layoffs and a slew of other events that have thrown the economy into disarray.

Demand Shock

The demand for necessary commodities grew tremendously in the days leading up to the lockdown, according to reports. Consumers were unclear when the lockdown limitations would be lifted, so they wanted to be prepared in case something unexpected happened. As a result, as supply declined, demand climbed and firms were able to earn more. Non-essential company owners, on the other hand, were not so lucky. Due to a change in income – such as redundancy, temporary wage decrease or unemployment – many customers saw non-essential things as unachievable with a high value. Furthermore, the demand deficiencies correlate to numerous sectors. An example of this, would be the closing of gys and thus the demand for workout apparel has lessened as well.


TACKLING ECONOMICS WITH FINANCE Supply and demand is an ever changing notion in economics. Finance can help you tackle challenging situations in line with such, objectively and effectively. If you would like to know more about how ZCV Capital and Consulting can assist you in all your finance needs call 0413 719 646 to speak to our loan specialist today.


Who are ZCV Capital and Consulting?

Based in Melbourne Australia, ZCV Capital and Consulting are proud to work on transactions all over Australia. With over 25 years experience, our team have a deep understanding of the needs to not only survive, but thrive in an ever changing world. ZCV offers consulting and capital raising services in a number of different industries including: Property Finance Start Ups Digital Strategy Entertainment No matter what your need is, our team are here to help. Get in touch with us today to see how we can help you to achieve your goals.

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