Explain the effect on the demand curve/ the supply curve, the equilibrium price, and the equilibrium quantity of N95 mask of the following events.

(a) before the covid-19 outbreak

(b) when vaccine is deployed

 

Question a

Before

Quantity supplied was equal to the quantity supplied. At some instances, the supply exceeded the demand.

After

The demand rapidly increased, causing a shift of the demand curve to the right, increasing the equilibrium quantity and equilibrium price

Question b

After the vaccine, the demand will rapidly decrease cause the lowering of the equilibrium and a decrease of both the equilibrium price and quantity. This is a result of the shift of the demand curve to the left.

Step-by-step explanation

Question a

Before, the COVID 19 pandemic, the demand and supply of the N95 masks was at equilibrium. In other words, the demand and supply was at equilibrium. In some instances, the supply of the N95 masks was higher than the demand. This is because it was only used by few doctors during surgery and contagious instances. However, after the COVID 19 outbreak, the demand of N95 mask went up causing as shift of the demand curve to the right. This was a result of the rapid spread of the Coronavirus. However, the supply of COVID 19 remained constant or increased slowly. This saw rise in the equilibrium price and the quantity supplied. In other words, after COVID 19, the equilibrium price shifted to the right, also the equilibrium price and quantity also increased.

Question b

When the vaccine will be deployed, the demand for the N95 masks will reduce because the sharp decrease in the spread of COVID 19 however the supply will reman the same or decrease slowly. The demand curve will shift to the left rapidly causing a decrease in the equilibrium price and quantity.