Answer to Question #317601 in Economics for ann

Question

Our country experienced a shortage of alcohol and facial masks due to the COVID-

19 crisis. Explain this event/issue using the concepts of economic and political

practices.

Answer 1

COVID-19 crisis caused the shortage of alcohol and facial masks. It can be explained by skyrocketing demand for these products and limited production capacity. Moreover the shortage of alcohol-based hand rubs provoked the rise in demand in alcohol-containing products, which are substitutes. At the same time high demand on facial masks was a little reduced by using of hand-made facial masks. The effect of these events were strengthened by government policies and law restrictions which were implemented in different countries.