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Question - Using demand and supply analysis to explain the phenomenon of panic purchase of sanitary items during the beginning of the pandemic in Australia
Describe the phenomenon of panic purchase, in particular, describe how the prices of the relevant items changed from the start of the pandemic and till the pandemic was under control the lockdown was lifted. (max. 200 words)
Use a demand and supply model to illustrate the increase of the price of the sanitary items during the beginning of the panic purchase and explain the causes of the increase in the price.
Use the demand and supply model to illustrate the return of the price to the normal level when the pandemic was under control and explain the causes leading the return of the price to the normal level.
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