What is the most significant market shock (change in supply or demand) that has occurred recently?

Question

Market Analysis: Choose a market with which you are familiar. In detail, list the determinants of demand and supply that are specific to that market.

What is the most significant market shock (change in supply or demand) that has occurred recently? What caused it. Please be sure to address pricing in that particular market.

Answer 1

How about a guideline for how to answer this question?

Pick a market where a regulatory change or a natural disaster has cause a major shift. For example, describe the market for groceries in New Orleans after Katrina. Major supply shock and demand shock there. Or pick a market where some illicit activity was recently legalized...gambling, for example. This would be a shock to increase supply. On the demand side--and I'm still thinking about Katrina--how about the market for rental housing in Houston, post-Katrina?

Think of it all in terms of the basic supply and demand curves. Legalization of an illicity activity would move the supply curve down and to the right, increasing output while decreasing prices (which helps explain the true motivation of those who want to legalize pot!). A demand shock, as in the Houston example, would move the demand curve up and to the left, increasing prices and quantity. Higher prices, more housing used.

You get the idea. Pick one that you know and go from there.

Answer 2

aspects of oil have actually bigger gradually because of the fact the fee has lengthy gone up. So industry Forces are literally working to stabilize the fee. regrettably, once you're coping with the Oil industry, supply and insist ability, "we've Cornered the provision. those are our demands." hypothesis and the decline in US refining ability because of company buyouts play a function. however the actual wrongdoer is Republican financial coverage. Oil expenditures have actually been extra reliable than we human beings think of, in terms of tangible money. yet oil expenditures are measured in US money and US money are not actual money any further. With pretty much 0.5 of the U. S. government funds being Deficit Spending, the dollar is dropping like a rock. Euros have been presented at par with the dollar and at the instant are worth two times as lots. We hit parity with the Canadian dollar in the previous this 300 and sixty 5 days. it is not that oil is that lots scarcer, this is because of the fact the dollar is worth lots much less recently.

Answer 3

Food.......Fuel Cost to deliver and Process. Not much more to say. The Supply and Demand I assume stay the same, but, the cost of oil drive the end product up.
Example; My brother have a big boat, and you can live on it. I will go and stay on the boat for about a month. Around are shrimp fishers. They said they only buy enough fuel for the day! Many have not filled their tanks in years as a result of fuel expense and this has to be passed down to the consumer.