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Q30 (16 points) Answer the questions below about the Wall St Journal video - How the Pandemic Is Accelerating Changes in Your Packaging

Economics

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Q30 (16 points) Answer the questions below about the Wall St Journal video - How the Pandemic Is Accelerating Changes in Your Packaging. In typical economist fashion, let's simplify the analysis by assuming that there is only one online product called NOZAMAs that is delivered to consumers. The market for NOZAMAS has demand and supply curves of the usual shape. A) Draw a diagram of the NOZAMAs market in an initial equilibrium, and label the axes and the curves. When the pandemic starts, how would you explain what happens in terms of the five factors that can change market demand? Show what happens on the diagram, all other things unchanged. Explain the sequence of events in words, using correct terminology to distinguish between changes in demand or supply, versus changes in quantity demanded or quantity supplied. B) Pandemnic pressures increased the price of cardboard packaging. 1. In economic terminology, what kinds of products are cardboard packaging and NOZAMAS? 2. Which elasticity concept captures the relationship between cardboard packaging and NOZAMAS? What can you say about the value of the concept? 3. On your diagram of the NOZAMAs market in A) above, show what happens, all other things unchanged, from rising packaging prices. C) The video also discusses the relationship between cardboard boxes and cardboard malers. From a supplier's perspective: