Due to covid-19 pandemic, use of mask has increased causing its supply to increase holding other factors constant. How does it affect supply for mask?
The increased use of masks due to the COVID-19 pandemic would likely result in an increase in demand for masks. However, the question states that the supply of masks has also increased due to this situation. Therefore, we are assuming that mask production has increased to meet the growing demand.
With an increase in supply, the supply curve for masks would shift to the right. This means that at each given price level, there would now be a greater quantity of masks supplied. As a result, there would be more masks available in the market.
This increase in supply could help alleviate shortages and meet the heightened demand for masks. It might also lead to a decrease in prices, as increased supply usually leads to lower prices in a competitive market. However, this would depend on the magnitude of the increase in supply versus the increase in demand.
Additionally, the increased use of masks has likely prompted a change in consumer behavior and preferences. People now see masks as a necessary item and may continue to use them even after the pandemic ends. This shift in behavior could result in a sustained increase in demand for masks in the long term, leading to ongoing production and supply in the market.
In one sentence
The increased use of masks due to the COVID-19 pandemic has led to an increase in supply to meet the growing demand in the market.
The increased use of masks due to the COVID-19 pandemic can impact the supply of masks in several ways. Let's break it down step-by-step:
1. Increase in demand: The higher demand for masks creates a greater need for supply. As more people require masks for personal use, the demand for masks rises.
2. Shortages: Due to the sudden surge in demand, there may be shortages of masks in the market. Suppliers may struggle to keep up with the increased demand, leading to potential supply constraints.
3. Production capacity: To meet the increased demand, manufacturers might need to scale up their production capacity. This could involve hiring additional workers, increasing raw material procurement, and expanding manufacturing facilities.
4. Supply chain disruptions: The global nature of the pandemic has disrupted international supply chains. Countries that rely heavily on mask imports may face challenges due to transportation limitations or export restrictions imposed by other countries.
5. Price fluctuations: When demand exceeds supply, prices tend to rise. The increased demand for masks may lead to a price increase, as suppliers try to balance supply and demand.
6. Market entry: The higher demand for masks may attract new entrants into the market. Companies that previously did not manufacture masks may start producing them, increasing the overall supply.
7. Government intervention: Governments may implement measures to regulate the supply and distribution of masks. This could involve price controls, export restrictions, or incentives to increase domestic production.
Overall, the increased use of masks during the COVID-19 pandemic can result in shortages, price fluctuations, and the need for increased production capacity in order to meet the rising demand.