use micro-economics to solve this case

(Word limit: maximum 300 words) (30 points) Read the following passage and answer two given questions. Face masks market during Covid-19 Pandemic In two first quarters of 2020, the COVID-19 has inflated the price of medical face masks in Vietnam 5-7 times its original price, according to Tuoitrenews. The average price level before the virus was about VND40,000 per box, but during that period it is VND200,000-300,000, with some even at VND350,000. These face masks often have little proof of origin and have no listed price on the shelves. Some local medical stores are suspected to have taken advantage of the current situation to make profit, and some have even withheld their supply of face masks to wait for prices to increase. Despite the absurd price of this common good, customers (especially in Hanoi and Ho Chi Minh City) are still lining up, allowing stores to raise the prices even higher. Given frequently changing business practices and local COVID-19 transmission and vaccination rates, masks will likely remain useful right now. Fortunately, in contrast with early on in the pandemic, these days you have many high-quality options to choose from. Between disposable respirators and comfortable, reusable cloth masks that filter nearly as well as medical-grade masks (and can be adjusted for a more-secure fit), just about everyone can find something they feel good wearing. This help release the heat of the face mask market. a. How can you describe the price elasticity of demand of medical face masks in the two first quarters of 2020 and right now? What factor(s) would likely explain this? (15 points) b. If the government imposes a binding price ceiling on the price at which a medical face mask box can be sold. Explain how does this decision affect the face mask market efficiency? (15 points) (Word limit: maximum 300 words) (30 points) Read the following passage and answer two given questions. Face masks market during Covid-19 Pandemic In two first quarters of 2020, the COVID-19 has inflated the price of medical face masks in Vietnam 5-7 times its original price, according to Tuoitrenews. The average price level before the virus was about VND40,000 per box, but during that period it is VND200,000-300,000, with some even at VND350,000. These face masks often have little proof of origin and have no listed price on the shelves. Some local medical stores are suspected to have taken advantage of the current situation to make profit, and some have even withheld their supply of face masks to wait for prices to increase. Despite the absurd price of this common good, customers (especially in Hanoi and Ho Chi Minh City) are still lining up, allowing stores to raise the prices even higher. Given frequently changing business practices and local COVID-19 transmission and vaccination rates, masks will likely remain useful right now. Fortunately, in contrast with early on in the pandemic, these days you have many high-quality options to choose from. Between disposable respirators and comfortable, reusable cloth masks that filter nearly as well as medical-grade masks (and can be adjusted for a more-secure fit), just about everyone can find something they feel good wearing. This help release the heat of the face mask market. a. How can you describe the price elasticity of demand of medical face masks in the two first quarters of 2020 and right now? What factor(s) would likely explain this? (15 points) b. If the government imposes a binding price ceiling on the price at which a medical face mask box can be sold. Explain how does this decision affect the face mask market efficiency? (15 points)