Market: Hand Sanitizer
Article: https://www.cnbc.com/2020/03/03/coronavirus-hand-sanitizer-sales-surge-leading-to-price-hikes.html
The COVID-19 outbreak has prompted an increase in the demand for hand sanitizer. Health experts have advised the public that good hand hygiene can help to prevent the spreading of germs. The World Health Organization (WHO) is also encouraging basic protective measures against the coronavirus, such as the regular cleaning of hands with alcohol-based hand rubs or soap and water. As a result, sales of hand sanitizer has surged around the globe. Data collected through Adobe Analytics shows a 1400% increase in demand for hand sanitizers in the U.S.
Stock for hand sanitizer has sold out on e-commerce retailers, including Amazon, Walgreens and Walmart. In response, third-party vendors are beginning to raise prices on Amazon and eBay. In the U.K, Defandol hand gel that has a standard retail price of £3.49 is now being sold on Amazon for £109.99.
Buyer’s preferences for hand sanitizer have increased, causing the demand curve to shift to the right. A growing concern for safety triggered the change in buyer’s preferences. The shift to the right has caused both an increase in the equilibrium price and quantity demanded.
Caution: Economics Students at Work 