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

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

Expert Solution

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.

Rahul Sunny answered 2 years ago

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