Reference no: EM132786441
At the start of the COVID-19 Pandemic, shortages of essential supplies occurred all over the country for items like face masks, gloves, hand sanitizer, soap, paper towels, toilet paper, etc.
1. What is changed in the market for these items once the COVID crisis began? Was it demand for these items, supply of these items, or both?
2. Why (explain answer from #1)?
3. When a shortage occurs, the Law of Supply and Demand states that the price will adjust to alleviate the shortage. That has happened to some extent over the past few months, but in some stores shortages for certain products persist. According to the Law of Supply and Demand, should expect the price of these items to increase or decrease to alleviate the shortages?
4. Why some shortages continue?
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