Question

PUTRAJAYA (THE STAR/ASIA NEWS NETWORK) - The Malaysian government has banned exports of face masks effective from Wednesday (March 18), said the Domestic Trade and Consumer Affairs Ministry on Friday. Minister Alexander Nanta Linggi, who announced this, said the government was also allowing imports of the product to ensure sufficient supply. Sources: STAR ONLINE

Based on statement above, what you think about : :
i. Demand of face masks during covid 19 ( your explanation compulsary to using
the curve)
(2 Marks)
ii.Supply of face masks during covid 19 ( your explanation compulsary to using
the curve) (2 Marks)
iii.What happen to Price equilibrium(Pe) and Quantity equilibrium (Qe) of face
masks during covid 19 . (Your explaination compulsart to using the curve)
(4 Marks)
iv.Explain the government action to solve the shortage of face mask during covid19
(2 Marks)

Answer 1

1) Demand for face masks dwung Coull Los increased drastically, as WHO recommended use of face masks to avoid catching COUID - 19. This will shift demand curve of face masks to the right - of Supply head will increase after imports increase powever increase in supply well be less than increase in demand - SI - ol -- Price will increase ca in s T O will increas 1 in D ) production Subsideze impor Encourage domestic Es subsidize domest Producers NOTES DECEMBER 201 S M T W T F Rs 2 3 4 5 6 8 9 10 11 12 13