Question

How does Covid-19 affect the demand for masks? What determinant(s) of demand changed that leads the demand curve shift to the right?

Answer 1

The impact of the coronavirus has been such that more people around the world want to buy more and more disposable masks. It has become an essential good seen as a means of self protection , which is why the demand has increased sharply.

Since the face masks have no substitutes available, hence the demand for such masks are inelastic in nature , as even if the price rises, people are willing to pay whatever price it is to buy a mask.

The determinants of demand that changed are :

• Consumer preference : Due to covid 19, consumers now see face masks as items of necessity rather than an option. This drives the demand up, while the demand curve shifts to the right.
• Consumer expectation : Since , demand for masks are on the rise as the virus spreads, people are speculating that prices of masks would increase when the virus spreads out even more. Hence, a lot of people are buying and ordering masks in bulk. This drives the demand curve to shift right too.