In March, Australians first feared the coronavirus would have a significant impact in Australia (as of May 14 2020, the situation is considerably better, with South Australia almost free of coronavirus). As a result, people panic bought and purchased many items, including toilet paper, disinfectant. However, many of Australians biggest supermarkets, including Coles and Woolworths, did not change the market price. A possible reason is that these supermarkets wanted to avoid a scandal that may arise from appearing to profiteer from the crisis, which is considered a major taboo in Australia. As a result, there were shortages in the market for toilet paper and disinfectant, and all of their stock was sold out. Coles and Woolworths responded by imposing restrictions on the purchase of these items, limiting each customer to a maximum of 2 toilet paper or disinfectant. Based on this information answer the following question:

1. Do you think there was a shortage in the market for toilet paper and disinfectant in December 2019? Draw the likely state of the diagram, explaining clearly whether the market was in equilibrium or disequilibrium? In normal times, do you think the demand for toilet paper is stable or prone to fluctuate? DRAW DIAGRAM
2. On the assumption Coles and Woolworths did not change the price, explain and draw the state of the market after the panic buying began. Hint, your diagram must show very clearly whether, after the panic buying, the market is in equilibrium or disequilibrium? DRAW DIAGRAM
3. Why did Coles and Woolworths restrict the maximum amount of toilet paper and disinfectant to a maximum of 2 per consumer? What this intended to impact the demand or supply of toilet paper? How may this partially alleviate the shortage? NO DIAGRAM REQUIRED
4. Now in South Australia it is much easier to buy toilet paper. Without drawing a diagram, explain why this may be true? NO DIAGRAM REQUIRED