This is regarding an assessment to address the shortage of face-mask and increase in face masks price issue.

a. Analyse the events that led to the rise of price of face mask?

b. Discuss the impact on the economic welfare on both domestic consumers and domestic suppliers (i.e. chemists and others selling the mask; not manufacturers) as a result of the price rise*. (Hint: what is economic welfare?). Focus on;

1. Consumer and producer welfare
2. functions of the market
3. government intervention

c. What is the policy impact on the economic welfare of domestic consumers and suppliers if a price ceiling is imposed to address the higher prices and shortage of face masks issue?

d. What other economic policies can be used? and its impact o economic welfare? (eg; subsidy)