QUESTION 4 Similar to previous health pandemics, at the outset of the COVID-19 pandemic the demand for protective goods such as masks, gloves and sanitisers increased markedly around the globe resulting in retailers making super profits. In addition, the sales of personal protective equipment (PPE), cleaning and fumigation contractors surged up as their demand increased. According to data released by Monfils LLC, an international research firm based in the Italy, face mask sales grew by a year-on-year increase of 400% in April 2020. However, in December of 2020, the price of face masks fully retraced back to its pre-COVID-19 level. 4.1 With the aid of diagrams, evaluate the change in the market structure between March 2020 and December 2020 as well as other factors that could have influenced the price increase of face masks in March 2020.

4.2 Critically discuss how price elasticity of demand of face masks was affected, including its impact on revenue at the outset of the pandemic relative to later in that year, when the price of masks returned to its pre- COVID-19 level