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Use the supply and demand model to predict and explain what happens to the market for...

Use the supply and demand model to predict and explain what happens to the market for goods sold at department stores during times of pandemic fears and lock downs.
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Answer #1

In such cases, people start panick buying. They start stockpiling large quantities of commodities so that they last long. This causes an immediate jump in demand. This shitf the demand curve to the right

On the other hand, if the lockdowns also stop the production activities, the supply will be resticted and supply curve shifts to the left.

The final result is that equilibrium price and equilibrium quantity will change according to the magnitude of change in demand and supply.

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