1. Discuss effects of small business on economic development.

Small businesses plays an essential role to both rural areas and big cities. It is flexible as it can
still survive within towns and villages despite serving reduced population. Aside from that, offering a
more diverse products and services is one features that allows it to create unique customer experience.
A stable and well manage small business stimulates growth and innovation in the community it was put
up. It provides employment opportunities to unemployed sector, which contribute to economic growth.
Moreover, since it attracts skills which tend to create and innovate solutions for existing ideas, it
become and instrument for facilitating business functions making large corporations to depend on them
which can be seen through outsourcing. The more such type of business thrives the more it creates a
domino effect to its related business connections which then contributes to the development of
economy.

2. Explain supply and demand and their impact on prices in crisis situations like the COVID19 pandemic.

Supply and demand are essential factors that must be considered in business management.
Supply pertains to the capability to produce goods and services. Demand on the other hand refers to a
quantity of goods and services consumers are willing and able to buy at a certain period of time. During
crisis, supply and demand are greatly affected which shapes a fluctuating price for various goods and
services. COVID19 pandemic stimulates survival mode for humanity increasing demand for basic
neccesities such as food and medical related mattera. Due to this, shortage on supply will occur cause by
disrupted business operations resulting to higher prices, a reason why government interfere to
facilitates the pricing of products and services. It must be noted that the lower the supply the higher the
prices and the higher the demand the higher the price. But then such situation is being regulated by
legal authorities to come up to an equilibrium and mitigate the financial difficulty which will occur as an
effect to supply and demand.

3. What are the reasons why various economies struggle for maximal usage of natural resources?

Due to modernization various changes have impacted nature. As humans become smarter,
excessive needs arises which commonly satisfied through the use of natural resources. But such
resources are limited. It must be restore and preserve after being used to prevent it being exhausted.
With vast and growing business industries, average natural resources one firm can utilize decreases. It is
more reduced due to government restriction implemented to protect and restore natural resources.
Furthermore, impact of global prevent business to use maximal usage of natural resources as it cannot
only worsen the possibility of massive destruction for nature but also the whole world. Due to this
various adjustment must be exercise by them in order to utilize natural resources in a manner that will
not destroy or exhaust resources which in turn creates difficulties to access maximal usage.