DURING COVID 19, THERE WAS A HUGE SHORTAGE OF HAND SANITIZERS RESULTING IN A PRICE INCREASE. USING THE LAW OF DEMAND AND SUPPLY, AND THE OPPORTUNITY COST . ASSESS ACTIONS OF BOTH CONSUMERS AND...

Law of Demand and Opportunity Cost
Law of Demand and Opportunity Cost
Introduction
The global hand sanitizer market globally has experienced high growth rate due to the outbreak of covid-19 pandemic situation. In the year 2020, the hand sanitizer industry witnessed a growth of 500%. It was mainly due to rise in the hygienic awareness and for self-protection from the infectious disease of covid-19.
We will analyze the law of demand and opportunity cost with respect to the actions of both consumers and suppliers of hand sanitizers in the pre-covid, during the covid era and post covid vaccination.
ANALYSIS ON HAND SANITISERS
Pre Covid-19
Before the advent of covid-19 pandemic there was no awareness of self-protection from the infectious virus due to which the price and the demand were both low. In this situation the opportunity to earn a higher return can be high for the manufacturer or retailer of hand sanitizer if they know of the spread and impact of covid-19 in advance.
On the contrary, if they do not have any idea of the impact of this disease, then they will waive the opportunity to earn additional profits thereby charging lower price for the hand sanitizer (Fernando, 2022).
Continued…
The law of demand signifies that with a rise in the price of goods, there is an inverse effect on the quantity purchased. Thus, higher the price, lower will be the quantity demanded. But during the covid-19 pandemic situation the demand of hand sanitizers reached 1400% from December 2019 till February 2020.
During Covid-19
The sanitizers from the local pharmacies were being sold out. During this period the companies manufacturing hand sanitizers have increased the prices by...