Module 3 Discussion: Supply & Demand of a Product
Description
Description As long as there is a demand for a product, it is likely to be supplied by someone. This includes both necessity items, such as food and fuel, and luxury items, such as vacation homes and jewelry. In some cases, products that are not necessary for life are demanded as if they were necessities. For this assignment, you will participate in a discussion about the factors that determine supply and demand in the scenario presented below. Scenario A pandemic of an aggressive virus invades the country. Which in turn causes the Federal and state governments to mandate closing of businesses and people to stay home to avoid contact with one another. This causes many workers to not have paychecks for bills and spending. The retail, restaurants, and non-essential business which includes manufacturing are temporary closed. Essential businesses are stores with grocery, gas, hardware, support services are open. Online does not have the restraints since the merchandise is delivered. Restaurants could only do delivery service or drive through service. Health care is employed. Essential items like toilet paper, food, face masks, and other health care items are in short or little supply, but no price increases due to government controls. Gasoline is in surplus supply and the price has dropped a dollar from the original price. The gas surplus is due to low usage and petroleum suppliers are still producing at max levels. The economy is falling into a recession. The stock market has dropped to lows of the Great Depression and investors are selling stocks for any price. The investors are pulling out of all markets. Instructions Read the scenario, do research, and respond to the following questions (all): Based on what you know about supply and demand, what would be the best strategy these organizations could implement to change demand? In your opinion, is it possible to alter the supply and demand for products in the present day market? How can a small business compete with these two retailers, Amazon and Walmart, explain?
