Exercise 2

TITLE:

THE IMPACT OF THE COVID-19 PANDEMIC ON THE MARKET FOR MASKS

Step 1:

The market chosen is of MASKS.

The COVID-19 pandemic hasresulted into mismatches in the markets, which were earlier working properly.

The pandemic has affected the economies around the world.

The market for masks witnessed a change in the supply after the spread of the COVID-19 virus around the world.

Step 2:

Market for masks has a downward sloping demand curve, and the supply has an upward sloping supply curve.

The market is very competitive in nature, because there are no barriers to entry or exit in the market.

The time period which we are taking into consideration is during the COVID-19 pandemic.

Subheading:

THE INCREASE IN SUPPLY

Step 3:

There is a shock to the supply, where there was a sudden increase in the supply of masks in the market.

This is because, as the demand for masks increased, more and more producers entered the market, and there was an increase in the supply of masks.

This resulted into an increase in the equilibrium quantity of masks, and the decline in the equilibrium price of masks.

over the period of time, there was over supply of masks, and the reduced price resulted into a decline in the profits of the firm.

So, this made the firms leave the market because they started earning losses.

STEP 4:

TITLE:

THE IMPACT OF THE COVID-19 PANDEMIC ON THE MARKET FOR MASKS

Subheading:

THE INCREASE IN SUPPLY

Question:

1. You need to use THE MARKET FOR MASKS to analyse, it must have had a market shock (unexpected change) in 2020 - 2021.

2.Research essay topic, gather information from a range of sources.3. Structure your essay. It needs: An introduction - short and sweet introducing the topic and market A paragraph describing the market - the market overview paragraphs analysing the impact of the market shock / change - apply as many economic A conclusion summarising your findings Do not include bullet points in an essay, if you want to present summarised information you would normally present in dot points, use a text box or chart.

4.Include a chart or graph ;

I have included an example below of 2 methods of drawing a graph that you could use, one uses colour to illustrate different economic concepts, the other has no colour but uses a table instead. Remember to include a heading with the graph.