Answer to Question #121043 in Microeconomics for Mohammad waqas

Question

a news piece is given analyzing the effect of covid 19 on the market of hand sanitizer.
question is what inferences can be drawn regarding the price elasticity of hand
sanitizers (For top three and the rest of local brands) before and after COVID-19? What are the
economic consequences for the top three players and the local brands of sanitizers?
what i actually have to do?

Answer 1

A news piece is given analyzing the effect of covid 19 on the market of hand sanitizer.

question is what inferences can be drawn regarding the price elasticity of hand

sanitizers (For top three and the rest of local brands) before and after COVID-19?  

Due to the Covid-19 pandemic, the demand for hand sanitizers increased gradually which in turn increased their price. The fact that hand sanitizers must be used as a protection against the disease made the sanitizers a necessity.

Necessity goods have an inelastic demand since no matter the change in price ,the goods must be consumed. Thus, covid-19 made the demand for hand sanitizers inelastic (for both the top three and the rest of the local brands).

What are the economic consequences for the top three players and the local brands of sanitizers? 

With an increased price and inelastic demand, the economic effect for the top three players and the local brands is that they realized an increase in their revenues.