Page 25 - Issue 01

The other subtle effect that the pandemic had was on the prices of commodities and goods and services.
Because of the lack of supply, certain essential items became scarce leading to an increase in prices. This
increase in price for the same good varied from one location to the other. The places which had a higher
concentration of the rich experienced higher increase in the prices – because of the higher willingness to
pay of those who were better-off, making the more vulnerable ones worse-off. The following graph
highlights the differences in the different regions:

We see that more than 50 per cent of the people residing in the urban region said that they had experienced
an increase in prices. Making a similar comparison between people belonging to different income
categories, we find, that the people who identified themselves as belonging to the struggling category
reported the highest increase in prices. Even rich people reported an increase in the prices. The only
income category where the higher percentage reported no increase in prices was those who were very rich.

Covid-19 also completely altered how the labour market functions – it made some sectors and some
economic activities gain whereas there were many sectors whose existence was completely nullified. No
amount of intervention was good enough to mitigate the mighty impact of the pandemic.

As time will pass, other significant ways in which individuals and the economy has been affected will
become evident. And, there will be many more ways in which the virus will continue to affect our lives

which will get revealed only with time. But yes, we do all concede that it was one demon that had potential
much greater than we could realize We see that more than 50 per cent of the people residing in the urban
region said that they had experienced an increase in prices. Making a similar comparison between people
belonging to different income categories, we find, that the people who identified

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