Question

Write a report about the Impact of Covid19 on two markets Hand sanitizers and soap. In ANY country you choose. Two actual markets not hypothetical.

2- For every market, discuss in the report how the changes in the demand determinants and supply determinants affected the demand and the supply. How Covid19 affected the market supply and demand?

3- For every market, discuss how the changes in the supply and demand affected the equilibrium price and quantity.

4- Did the government intervene in any of your markets? How? What is the implication if any?

5- Discuss how the two markets affect each other. Are they complements or substitutes? How the changes that take place in one market affect the other?

Note: You don’t have to collect data and numbers. I just need you to talk in wholistic view about the general impact of Covid19 on the two markets that you will choose. You will need to conduct some research though. Below the table some references where you can search for articles about the impact of Covid19 on the markets that might interest you.

No graphs, no tables of data are needed for this assignment. Just write consistent and logically valid report.

Answer 1

The past two months before the outbreak of covid 19, the demand for hand sanitizer was steady. But after the outbreak, the panic-demand among the people leads to a sudden spike in the demand of sanitizers and soaps as well.

As per the instructions, sanitizers and soaps work well to kill the virus when it is in outside of body. It is a preventive measure to avoid the disease. So totally more than 200 countries are afraid of the deadly virus and for the prevention, sanitizer and soaps become their essential stuff.

The major producers are ramped up their production and make sure the well backed supply chain management. In most of the chemist and retail stores, they have gone out of stock and Godrej Consumer Products Ltd one of the leading manufacturers of sanitizers reported that, the production has been speeded up to meet out the supply.

Impact in the markets are as follows:

From the help of some practical data you can understand the market hype.

Year over year, the demand for sanitizers demand in the UK as of February, was 250 percentage and in Italy it was 1800 percentage.

Soaps are more preferable when it is come to lower and poor people, just because of the price and it is proven soap works well on this virus attack than sanitizers, so demand for soap is also hyping like anything.

2. Basically, the demand and supply is driven because of it's determinants, like income, price of the product, consumer preferences nd expectations and price of complementary and supplementary goods. But in this current situation, prevention is the best determinant of the sudden hike. Irrespective of brands and preferences, every companies boosted up their production, to satisfy the demand.

When it comes to supply, future price, profit, technology, consumer reach are the determinants. So by utilising this demand, they can maximize their business with the stipulated time and profit, without any hesitation.

3. Just because of the current scenario, definitely the demand is higher, so increased demand cause increase in equilibrium price and quantity of goods. So the prices of sanitizers and soaps are relatively high, when compared to the past. Even the manufacturers didn't announced the price increase, the price are slightly high when it is come to retail stores, just because of the scarcity.

4.Deputy Commissioner Ferozepur Kulwant Singh, reported that the prices and supply of safeguard masks and sanitizer have been regularised, in the view and welfare of backward people and to stabilize the situation. The government also encouraging the production of those safeguard stuff like soaps and sanitizers in the local.

5. Yeah, for sure both the soap and hand sanitizers are complementary eachother, and more relatively in this emergency situation. To wash hands either soap or sanitizers are preferable. But both is not affected, because of one product. It is obvious, sanitizers can't be used for bathing. So soaps have it's unique utility and alcohol filled sanitizers are used for it's own usage. Though both of these are complementary each other, it doesn't affect them. And also the demand is very very huge. Look at the percentage of demand, above I have mentioned. It was quite huge. So for the current scenario, apart from covid 19 every essential are needed, and the demand is in infinity's.