One thing we will learn from this pandemic is that when people see a crisis coming, they buy A LOT of toilet paper.
The surging demand has been one of the most fascinating and more light-hearted economic impacts from the spread of Covid-19.
Interestingly, we have seen the same behaviour all over the world. It would seem that consumers, be they European, Asian, or Australasian, all go mad for loo roll in the face of a deadly virus sweeping through your neighbourhood.
Toilet paper manufacturers have therefore been working around the clock to satisfy the increased demand. One in particular, the Bridgend Paper Mill in the UK, has recently been given the go ahead to build a second production line which will enable them to fill the current shortage.
This will enable the firm to almost double their current production capacity of around two million loo rolls a day. In the face of surging unemployment across the UK, this will also be welcome news for locals with around 70 new jobs to be created.
THINK LIKE AN ECONOMIST!
Q1. What is meant by the term shortage?
Q2. Draw a supply and demand diagram to show the market for toilet paper in recent months.
Q3. Draw another diagram to show the impact of the new production facility.
Q4. Given the information in this article, discuss whether the supply of toilet paper is price elastic or price inelastic.
Click here for the source article
