Pandemic Paper Discussion
After the pandemic became apparent Spring of 2020, consumers all over the world hoarded toilet paper
resulting in empty shelves. There was a dramatic increase in demand for toilet paper (demand curve
shifted to the right) due to panic buying. Therefore, the market price for toilet paper should have
dramatically increased. Stores feared of being accused of price gouging, so prices remained the same.
The result was vast shortages of toilet paper that months to recover. This topic is taken from Chapter 3.
1. Increasing the price reduces the quantity demanded. This increases quantity supplied. The more
quantity of the good/service supplied approaches equilibrium, a shortage is avoided.
2. Changes in tastes caused the demand curve to move. Consumers had an increased interest in
toilet paper during the pandemic, being home for longer periods of time. The demand shift is
not due to a change in consumer income, prices of related goods, or population/demographics.