“A Rising Speed in prices of
goods“
According to the
article due to scorching
heat and worst drought the U.S government decided to increase the prices of goods,
the consumers had to change their spending patterns , since the drought has
affected 88% of their crop , the staple processed foods and animals and last
but not least the nation’s leading export
farm .
Consumers will be forced to spend
and buy them since it’s the price of milk , beef , chicken and pork as these
products are there day to day essentials , they will have to be spending their
money on food only , speaking for the low income earners as it has a heavy
burden on them ,the prices would incur a
substantial consumer welfare loss . When the prices of goods rises compared to
those of its competitors it would leave an impact on the loyal customers and
will start making new ones in the market, which leads to opportunity costs .
The suppliers will continue
supplying with their high prices and demand of goods hardly changes which makes
it price inelasticity of demand. the market structure will be affected and will
suffer a great loss , since consumers will not be buying from them , the competition
between small business and large ones becomes a challenge.
* This is a diagram showing that
when price has increased the quantity
demanded doesn’t change the curve Remains vertical.
Where as in Small business will
have an enormous advantage over the large ones, small business which have substitutes
for the mentioned goods demand increases for them, as people will be running
from the high prices to where prices are low or normal and payable by all
income earners, small business will have a great boost on their products and
this will not only satisfy the small firm’s but matter fact the labors working
in that specific firm will probably have a raise in their income
The government should advertise
since advertising plays a huge role in our life they should advertise and get
people’s attention by saying by they
have increased the prices of goods and get the consumers on their side instead
of being against them, this is not the governments fault at all this is because
of the weather changes , I personally
agree with the government as if this ever happened to another country this same
solution will be used by the higher
authorities i think the consumers should
bare with the idea of prices been increased
.
It is said that Food is one of the
most serious economic issue in today’s world, prices have been either the
‘best’ or ‘worst’ case scenario. If you shop for groceries so much , you
probably have noticed the increase in other food products as well , many people
are buying less unless the food is on sale and will lead to so many people not
being able to buy food , this means whether people are going to survive or not
, this is happening because the amount of money in the economy goes up the government will be ready to raise the
price of goods not only because of that but because of the drought that has
been a great issue not only for the U.S government but other countries in the
world are suffering from the same issue like brazil and others and the increase
in price is that there will be a market
fail if the products are less and the price stays unchanged . a lot of the
people in the economy specially the low income earners will be going to a food
pantry and some might be on food stamps this is not good for the governments reputation
this is not about the drought periods but before it also this has been going on,
the government has to bring up a solution for this situation as soon as
possible before some end up in the streets and some die due to starvation since
they can’t afford any kind of food. Many of the consumers live in apartments
and buildings as they won’t be able to grow their own food as there as some people who own farms and
gardens and will be getting their vegetables and fruits just by planting them .
The prices of food are really scaring people and distracting them from their
other life decisions. If the prices of healthy food keeps on increasing people
will tend to by cheap fast food and this will lead to obesity and for the most
they will be the younger people who are not going to be eating healthy food am sure that’s not what the government is
looking for , an entire nation dealing with obesity .
If the demand for your product decreases
without a change in the supply curve, you will have a surplus of product on the
shelf a reduction in demand is usually followed by a reduction in supply and an
increase in price, when the supply is not reduced in response to the demand
reduction, the excess product n the
shelf drives the price down, therefore this leads to scarcity in decrease of
supply .
·
The Supply curve
then remains unchanged also even if the price of the products increase or
decrease it doesn’t effect the supply.
·
The diagrams below show the
decrease in both demand and supply
I personally think it’s not
the government t blame as the drought was a sudden change in the weather this
year and I hope in the future that they
lower their prices to an extent that the consumers demand meets their supply
and that all those accusations disappear and consumers get healthy by buying
the right groceries and I think the consumers should bare with the idea for
awhile until things get back to normal, but for the low income earners I
advice the government to open up more food banks just for the ones who can’t
afford purchasing food as the government can differentiate between the middle
class and the lower class consumers, however
it think the middle class people can live with a less grocery and will
surely survive the increase in price of
goods. I Think that eventually the prices will drop, since the government
will not be able to gain from the increase of price and their products will
eventually also expire if no one buys it.
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