Question

In March of 2020 there was a sudden uptick in the orders for Plexiglas. Massive unexpected orders poured in from retailers, supermarkets, banks, hospitals, for Plexiglas to act as protective shields for employees from Covid infections. By May, the Plexiglas manufacturer, Rohm Plexiglas, was sold out and prices soared. Before Covid, standard Plexiglas typically cost $10 a square foot, but by May 2020 it had reached $45 a square foot.

Show graphically, using supply and demand, why by October 2020 the price has settled to $25 and the long run price expected to be even lower, at $15

Answer 1