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Image source: Aly Song/Reuters

How the COVID-19 Helps Us Understand the Economy

As the coronavirus eats through the fabric of our societies like a cankerworm, it teaches us some fundamental lessons about our economy. We ignore these lessons at our own peril.

How does the price system work?

What does this mean for the prices of goods and services in this time of the COVID-19?

“Market prices… signal to producers and consumers the relative scarcity of resources. They tell producers how to combine resources in the ways that produce the most value for consumers and tell consumers when they should expand or contract their consumption of various goods and services”

What does this mean for employment?

Conclusion

Electricity, Entrepreneurship and Economics.

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