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Trident University: BUS530-Managerial Economics Discussion 1:

Trident University: BUS530-Managerial Economics Discussion 1:

Question:

Discuss how the pandemic, war, and inflation triggered supply and demand shifts in your workplace, community, or home. Be sure to include price implications in your post. In 2020, we scrambled for hand sanitizer and toilet paper. Store shelves were empty, and the internet was offering scarce goods for a premium 2021 saw local restaurants looking to fully reopen but having difficulty finding workers. Supplies were still scarce. 2022 ushered in a war in Europe and inflation. This is supply and demand in action

Answer:

Beyond a reasonable doubt, COVID-19 has had an effect on each and every sector of the economy. Fear developed across the population as a result of COVID-19, which in turn resulted in the cancelation of fearful events, isolation, and quarantines, as well as travel bans. The epidemic caused by COVID-19 has had a disastrous effect on the supply systems of our countries and communities. At a time when things were starting to return to normal, the announcement of a new strain that was highly hazardous, known as the Delta Variant, sent us back into a situation of continual uncertainty.

Fearing for their safety, most people stocked up on supplies when COVID-19 became a pandemic. Things like food, toilet paper, hand sanitizer, and even some medications fall into this category. Due to the sudden surge in demand, the supply of the impacted commodities was drastically decreased, leading to a dramatic spike in costs. People aren't showing up to work as often as they formerly did, which has an impact on production (McKinsey & Company, 2021). The devastating loss of jobs that the pandemic induced has had a knock-on effect on most families' financial stability. Because people's buying power and demand are both increased with more money, this has led to a decrease in demand. Prices have also decreased over time.

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