Economics Problem 3 (3 pts). This question focuses on the article: R. Baldwin and E. Tomiura, “Thinking ahead about the trade impact of COVID-19”, in: R. Baldwin and B. W. di Mauro (2020), “Economics in the time of COVID-19”, Ch. 5, pp. 59-71, Centre for Economic Policy Research, London. https://voxeu.org/content/economics-time-covid-19. The authors explain three different channels through which COVID-19 affects trade of manufactured goods: (i) supply, (ii) demand, and (iii) “supply chain contagion”. Explain all three effects of the pandemic on trade in your own words. Expected is ca. 0.5-0.75 page. Problem 4 (7 pts). COVID-19 has affected the demand for goods differently. While demand for many manufactured goods has significantly decreased, the demand for food and agricultural goods was less affected. a) Briefly explain why demand for food and agricultural goods is less affected by the pandemic. (1 pt) b) Use a suitable graph to illustrate the world market (i.e., relative supply and relative demand of agricultura
