As fears of a coronavirus pandemic gripped Australian society, a wave of panic-buying resulted in supermarkets running out of several staples such as toilet paper. Indeed, the prospect of running out of toilet paper appeared to frighten some consumers much more than the pandemic itself. Others attempted to profit by accumulating toilet paper, and other scarce items, and then re-selling it at significantly higher prices to desperate consumers.

With the help of a diagram, provide an analysis of the market for toilet paper in Australia which explains the causes and consequences of the shortage in toilet paper, and how you expect this market will adjust in the long-run.