Distillers Enter the Hand Sanitizer Market The demand for hand sanitizer surged during the Covid-19 pandemic and the price increased from $2.50 to $12.50 per bottle. U.S. sales revenues jumped 300 percent in the last week of February and 470 percent in the first week of March, compared to one year ago.

a. What features of this market make it competitive?

b. Describe and explain the changes in the price, quantity, and economic profit as the hand sanitizer market responded to Covid-19.