What situation has been created by COVID-19? A) A shortage of toilet paper will result. B) A surplus of toilet paper will result. C) The market for toilet paper will be in equilibrium. D) The situation will result in the creation of a perfectly competitive market.

What situation has been created by COVID-19?
A) A shortage of toilet paper will result.
B) A surplus of toilet paper will result.
C) The market for toilet paper will be in equilibrium.
D) The situation will result in the creation of a perfectly competitive market.

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Answer

• A) A shortage of toilet paper will result.
  Explanation:
  Many people are buying more toilet papers than before, some to keep stocks in the house in case of lock down and others to feel secure and ready for the situation at hand and other is due to increased usage in hygiene practices during this period, like washing hands. This high demand for toilet papers has created pressure on supplies, causing a shortage. Anytime demand for a commodity is greater than the supply, there results a shortage.