Micro Economics’ impacts of Covid-19

Due to the prevalence of the Novel Corona Virus at the end of 2019 and its wide spread, many negative effects have appeared on the global economy, microeconomics is one of the branches of economics that concentrates on studying the behavior of the consumer and companies relating to the products’ supplies and demands. the effects of the epidemic on the micro economy can be divided mainly into direct and indirect effects. The direct effects are mainly the resources invested in treating epidemics, such as medical costs for treating the infected people, the development of vaccines and antiviral drugs. In addition to changing the behavior of individuals and companies. As for the indirect effect, its impact can be evaluated by examining the reactions of individuals in particular and companies in general and the effects of these behaviors at the micro level of the economy. According to micro economics science, individuals and companies have specific reactions to epidemics. the extent of the company’s responses depends on the economic benefits that they can obtain. As individuals and companies fail to take effective self-protection procedures, companies will need to invest more money to control the epidemic. Compared to the direct economic impact, such as the costs of hospitalization and medication, the indirect impact can be much greater than the direct effect which includes the absence of individuals, the reduction of productivity and the cost of non-drug intervention to reduce the spread of the disease. It is expected that most companies will suffer huge losses if the virus crisis, curfew, and the current level of work in factories around the world continues. And this will have a catastrophic impact on the global economy in an unprecedented way.