- When
the SARS outbreak started in mid March 2003 and the disease quickly spread
to the community, prices of surgical masks surged to a record high
level. Despite the continual spread of the disease within the
community at the beginning of April and more citizens are wearing masks,
the prices of masks come down substantially. Explain this economic
phenomenon with the aid of a demand-supply diagram. (The
following photos show recent changes in the prices of masks. Click on the
photos to see the prices more clearly.)
![](pricin6.jpg)
12 - 4 - 2003
15 - 4 - 2003
15 - 4 - 2003
- Explain the market structure of the surgical
masks market.
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