‘The food supply chain is breaking,’ Tyson says as plants close. Questions What type of meat was processed at the plants that shut down? Will the closure of these plants change the supply of meat, the demand for meat, or both? Does this event illustrate the law of demand or the law of supply? Explain. … Continue reading Food Supply Chain
Author: Robin Bade
Chicken Wing Surplus
A national surplus of chicken wings Questions According to the news article, what is the most expensive part of the chicken? What is the effect of the cancellation of March Madness and the COVID-19 pandemic on the market for chicken wings? After the events described in #2, why does the market have a surplus? How … Continue reading Chicken Wing Surplus
Elasticity of Supply of Face Masks
The COVID-19 pandemic is giving us data that enables us to calculate the price elasticity of supply of face masks. Demand has increased, the price has risen and the quantity supplied has increased. How has the price changed? In the earliest months of 2020, the price for a box of 50 face masks was $10. … Continue reading Elasticity of Supply of Face Masks
COVID-19 and Hand Sanitizer
You hear it everywhere! Wash your hands! Use soap! Use hand sanitizer! Health professionals, news media, and social media scream at us and we’re getting the message. Our everyday behavior is changing and the market for hand sanitizer is changing too. What is happening to demand? Health experts tell us that our best defense against … Continue reading COVID-19 and Hand Sanitizer
COVID-19 and the Market for Orange Juice
COVID-19 is rapidly changing our world, and our responses to the pandemic are affecting many markets, one of which is the market for orange juice. What is happening to demand? The immune-boosting properties of orange juice are well known and with the contagious properties of COVID-19, the demand for orange juice is increasing. What is … Continue reading COVID-19 and the Market for Orange Juice
Cash Injections
Fed to step up cash injections for banks to guard against market pressure. Questions Why does the Fed want the supply of bank reserves to remain “ample”? The Federal Reserve says that it will “up the amount it offers in overnight operations”. What is an overnight operation? Explain how increasing the amount it offers in … Continue reading Cash Injections
COVID-19 Fears
NY Gov. Reveals State Hand Sanitizer Amid Price Gouging, COVID-19 Fears. Questions Who produces Corcraft Products? Do COVID-19 fears change the demand for hand sanitizer or the supply of hand sanitizer or both? Given your answer to #2, why does the price of hand sanitizer rise? Include in your answer a discussion of the change … Continue reading COVID-19 Fears
Feds Hit COVID-19 Panic Button
The Fed just hit the coronavirus panic button. Questions Why do “experts” say that the Fed has to act “now”? The former Treasury Assistant Secretary for Public Affairs in the George Bush administration states that “The Fed could not ignore that there would be a real economic impact from the coronavirus.” What is that impact? … Continue reading Feds Hit COVID-19 Panic Button
COVID-19 Price Gouging
Amazon, Walmart and others battle price gouging. Questions Why are online retailers playing whack-a-mole? What is price gouging? Give two reasons to support a law against price gouging. What does an economist say is the result of a law that prevents voluntary market transactions? Draw a diagram to illustrate your answer to #4.
Oil Prices Plunge
Oil prices plunge 8% after OPEC+ fails to agree. Questions What is OPEC+? What is the effect of the coronavirus outbreak on the market for oil? Everything else remaining the same, what is expected to happen in the oil market in April? Will this event change the supply of oil, the demand for oil, or … Continue reading Oil Prices Plunge