HOW DO YOU FEEL ABOUT THIS DICUSSION POST AND HOW ITS AFFECTING THE ECONOMY The article I chose was titled Why is there
Posted: Sun May 29, 2022 7:01 pm
HOW DO YOU FEEL ABOUT THIS DICUSSION POST AND HOW ITS AFFECTING
THE ECONOMY
The article I chose was titled Why is there a baby
formula shortage in the US, and what can parents
do? written by Eric Berger on May 18th of this year. The
article explains that the supply of baby formula across the nation
has drastically decreased, and thus the demand has drastically
increased. Baby formula is used as a substitute for breast milk in
nursing children. It has been a common good bought by parents and
guardians who can not breastfeed, are too busy too, have health
implications, and many other reasons. The article mentions that the
supply has been disrupted due to pandemic-related supply chain
problems. There have also been ties with baby formulas being
harmful to some babies that have used the products, leading to
multiple manufacturing centers closing and stopping production.
With this considerable demand increase as well as the low quantity
of goods made, the equilibrium price will also increase as baby
formula is at its greatest demand ever recorded. In my opinion, I
believe that the equilibrium price will lower soon, and the
quantity will be increased. The FDA, as well as the Biden
administration, have both begun to propose settlements and offer
aid that would open closed manufacturing centers. There are also
new processes pending that would allow foreign products of baby
formula to be more easily exported to the United States, as
ninety-eight percent of baby formula is made domestically. These
would drastically increase the quantity of supplies, which would in
turn lower the equilibrium prices as supply rises.
THE ECONOMY
The article I chose was titled Why is there a baby
formula shortage in the US, and what can parents
do? written by Eric Berger on May 18th of this year. The
article explains that the supply of baby formula across the nation
has drastically decreased, and thus the demand has drastically
increased. Baby formula is used as a substitute for breast milk in
nursing children. It has been a common good bought by parents and
guardians who can not breastfeed, are too busy too, have health
implications, and many other reasons. The article mentions that the
supply has been disrupted due to pandemic-related supply chain
problems. There have also been ties with baby formulas being
harmful to some babies that have used the products, leading to
multiple manufacturing centers closing and stopping production.
With this considerable demand increase as well as the low quantity
of goods made, the equilibrium price will also increase as baby
formula is at its greatest demand ever recorded. In my opinion, I
believe that the equilibrium price will lower soon, and the
quantity will be increased. The FDA, as well as the Biden
administration, have both begun to propose settlements and offer
aid that would open closed manufacturing centers. There are also
new processes pending that would allow foreign products of baby
formula to be more easily exported to the United States, as
ninety-eight percent of baby formula is made domestically. These
would drastically increase the quantity of supplies, which would in
turn lower the equilibrium prices as supply rises.