Toilet paper has been running out all around the world, with Australian’s genuinely fighting over it in supermarkets – and there has been a big show about it in the news.
This leads to some interesting thought experiments such as:
And yet, here I am in a big Wellington supermarket. It has:
- lots of toilet paper,
- specials on all the toilet paper!
This doesn’t seem to make sense. If concerns about COVID-19 are driving people to panic buy toilet paper we know that the demand curve has shifted right, and prices should have risen! So what is going on. Lets put our economics hats on and find out 🙂Read more