During the COVID-19 pandemic, there is the sense that essentials like toilet paper is desperately needed....

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Economics

During the COVID-19 pandemic, there is the sense thatessentials like toilet paper is desperately needed. Use demand andsupply analysis to explain what should happen in the market.
Suppose stores donâ€™t want the backlash of increasing the pricesdue to the higher demand. . What do we expect to happen?
[Discuss how changes in demand will affect prices. Thenshow how a shortage develops using the idea that prices are notchanging with the equilibrium.Â Â This is NOT a priceceiling (just a shortage)]
Graphs are required, a minimum of 2 graphs.
Choose a topic from the list below and use economic principlesto answer the questions.. Do not embark on analysis focusing onsocial, political, or other disciplinary inquiries of thetopic.
Papers need only be minimum of 2 pages (including your graphs).Try not to go over 4 pages please.

Answer & Explanation Solved by verified expert

4.4 Ratings (583 Votes)

In fig1 Due to the pandemic the supply chains get disruptedand the supple decreases which results in shifting of supply curveto the left As the need for toilet paper is already much more thiswill create excess demand in the market which is needed to befulfilled for which manufacturers will make arrangements for thematerials required as toilet paper becomes a necessity But See Answer

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