Answer to Question #117782 in Macroeconomics for Mcfly

Question

During the ongoin pandemic, discuss about the elasticity of demand for hand sanitizers with an appropriate graph

Answer 1

The demand for hand sanitizer has risen exceptionally , while supply has limited and falling fast.The demand for sanitizers is therefore price inelastic as the demand is less responsive to the change in price.

As price increases from p2 to p1 ,the change in demand also takes place but the change is very small , that is betwen q1 and q2.