Suppose you are asked to do a market analysis in an area in which a natural disaster has recently occurred. For example, Nashville after the Spring floods or New Orleans after Hurricane Katrina.
Other than building supplies, choose a market for a good or service that will be affected. Will demand or supply be affected? What happens to equilibrium prices and output in this market?© BrainMass Inc. brainmass.com October 17, 2018, 3:03 am ad1c9bdddf
A market that will be affected in an area hit by a disaster is restaurant meals. People in the affected area will want to buy their food quickly and cheaply at supermarkets, not sit down for a slow, expensive ...
An example of how supply and demand for restaurant meals will be affected by a natural disaster.
Suppose you want to start a business in an area in which a natural disaster has recently occurred.How would you decide which kind of business to start? Choose a business in an industry that has been affected, either in a negative or positive way, by the natural disaster. Will demand, supply, or both shift as a result of the event? What happens to equilibrium prices and output in this market? Would you expect these effects to be short-term, or will they impact the long-term performance of the business?View Full Posting Details