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 8:05 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.