ECO401 GDB Spring 2020
ECO401 Economics GDB Solution & Discussion Spring 2020
In Pakistan, the COVID-19 outburst has led to a surge in demand for hand sanitizers. All time high increase in prices is experienced due to unprecedented demand and has made it difficult to find and buy hand sanitizers in local markets. Low quality hand sanitizers are also entering the market because of unmet demand. Substandard products could seriously interrupt current efforts to mitigate transmission of COVID-19 by reducing the effectiveness of sanitizers used by Pakistanis. There are twenty three sanitizer brands that do not conform to World Health Organization (WHO) standards as tested by Pakistan Standard and Quality Control Authority (PSQCA) and need to be removed from the market. During the rampant COVID-19 virus, the use of hand sanitizers and disinfectant soaps have doubled. The use of right products ensures precedence over everything. Medicam Hand Sanitizer, Cool and Cool Hand Sanitizer, Dettol Hand Sanitizer, HiClean Hands Sanitizer, Purell Hand Sanitizer, Lucky Hand Sanitizer, The Body Shop Strawberry Hand Sanitizer, Clearex Anti-Bacterial Hand Sanitizer, Doctor Hand Sanitizer and Hemani Tropical Tango Hand Sanitizer are some famous hand sanitizers available in Pakistan during this pandemic.
Keeping in mind the characteristics of four market structures discussed in lectures, you are required to identify in which market structure hand sanitizers companies are operating out of four market structures. Justify your answer by applying the characteristics of that market structure to the given industry.