Homework

Scenario 2

Coronavirus: Ridiculous scenes across country as toilet paper panic persists

A Current Affair Staff - 04 March2020

'The threat of a coronavirus pandemic has led people across the country and abroad to panic buy toilet paper.

The madness has even seen reports emerge of a delivery man in Hong Kong being robbed at knifepoint for 600 toilet paper rolls.

It is unclear exactly why loo paper has become the hot ticket item for a potential battle with a respiratory infection, but there isn't much logical about these scenes, which some psychologists are suggesting is a demonstration of herd mentality.

"I think it's ridiculous! Why toilet paper?" a Sydney shopper told A Current Affair. "The only reason I've bought it is because I didn't think I could get any."

Woolworths has introduced a four-pack limit for toilet paper today as stores across the country ran out of the highly sought-after product.

....

Instead, supermarket shelves across the country have been decimated, leaving empty aisles documented in the Gold Coast, Geelong, Double Bay, Richmond, Redcliffe, Leichhardt, Donvale, Roselands, just to name a few'

(Source: https://9now.nine.com.au/a-current-affair/coronavirus-panic-buying-leaves-toilet-paper-out-of-stock/1bba0e58-bc19-437a-bdbd-00d69c81a672)

Economic Analysis

Read the article extract above.

Using an appropriate theory from this course (not the explanations can be found from social media) to explain panicking buying behaviour of toilet paper in Australia. Use appropriate graph/s in your explanation.

In writing your answers, consider the essence of the story given in the scenario and include assumptions you have made in this economic analysis.