Question

find an article about a current event that discusses a change in supply or a change in demand in the marketplace in some manner. In your article review: Provide a one paragraph review of what the article is about. Identify whether it is supply or demand that changed. Explain which determinant caused the change (if it can be identified) If the determinant cannot be identified, explain why you weren't able to identify this as a change in either supply or demand. Identify whether as a result of this change we can expect market equilibrium price to rise or fall and market equilibrium quantity to rise or fall.

Answer 1

This is an article published in the New York times.

This article talks about the sudden increase in the demand for toilet papers across the country, may be across the globe. This article was published in April. This article talks about how millions of people suddenly started buying toilet papers in bulk. Not just in bulk but people went mad about buying toilet papers. People started panic buying toilet papers on the US.

This was a case of change in demand as the supply of toilet paper remained same while the demand increased suddenly.

This particularly happened due the rise of pandemic Covid-19 across the globe. This disease spread by the coronavirus spread so fast that people started panic buying the toilet paper and started stocking them on their houses, creating a shortage of the product.

After this happened when the demand Increased suddenly and the supply did not change the equilibrium price increased and the equilibrium Quantity also increased. This can be explained with the graph below.

The demand shifted from D1 to D2. The price increases from P1 to P2 and the Quantity Increases from Q1 to Q2.

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