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Please help me understand how this works. Provide step by step detail and description for better understanding. Case 1) A health problem associated with a

Please help me understand how this works. Provide step by step detail and description for better understanding.

Case 1) A health problem associated with a coronavirus has broken out in your country. As a result of the situation, the number of consumers wanting to purchase hand sanitizer has increased this season.

  1. prepare a graph that shows the intersection of the demand and supply curves which establishes the equilibrium point, the price and the quantity of the initial equilibrium.
  2. Analyze situation and identify the curves movements find the equilibrium point, the price, and the quantity of the final equilibrium, and compare to the initial equilibrium.
  3. Evaluate situation in terms of:
  • The effect on demand (increases or decreases)
  • The effect on supply (increases or decreases)
  • The effect on equilibrium price and quantity (increases or decreases)

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