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430-6 Applied Eco Reaction Paper

The document discusses how the supply and demand of alcohol has been affected by the COVID-19 outbreak. It explains that the pandemic has created a surge in demand for alcohol as people need it to disinfect their hands. However, this increased demand has put pressure on the supply chain as manufacturers work to ramp up production to meet needs. If shortages occur, it could lead to price gouging from resellers taking advantage of scarcity, further exacerbating panic among consumers during this crisis. The conclusion emphasizes the importance of preparing for unexpected situations and reflecting on one's character during difficult times.

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Chriselda Cabangon
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76 views3 pages

430-6 Applied Eco Reaction Paper

The document discusses how the supply and demand of alcohol has been affected by the COVID-19 outbreak. It explains that the pandemic has created a surge in demand for alcohol as people need it to disinfect their hands. However, this increased demand has put pressure on the supply chain as manufacturers work to ramp up production to meet needs. If shortages occur, it could lead to price gouging from resellers taking advantage of scarcity, further exacerbating panic among consumers during this crisis. The conclusion emphasizes the importance of preparing for unexpected situations and reflecting on one's character during difficult times.

Uploaded by

Chriselda Cabangon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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REACTION PAPER

LARA MAE CABANGON APRIL 15, 2020

ABM 403 MR. RECTO LUCES

How Supply and Demand of Alcohol Move Amidst COVID-19 Outbreak

Coronavirus disease (COVID-19) is an infectious disease caused by a newly

found virus which is the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-

2). This was first identified in Wuhan, China that had spread globally resulting it to being

a pandemic. This deadly disease causes people to panic buying the products that they

know they needed most like foods and hygienic items. People are told by doctors to

wash their hands frequently and to always have alcohol with them because being clean

is an important way to prevent the said virus.

Let us understand first the laws of supply, demand and economics to tackle and

react to this easier: The law of demand says that as the price increases, the quantity

demanded decreases; The law of supply says that as the price increases, quantity

produced increases; But there’s a law of economics which states that as items become

scarce, prices go up.


This coronavirus is creating a supply and demand shock to the economy in the

product alcohol specifically. There is an extreme raise in the demand for people is

willing to purchase this product because it is highly needed and there is an effect in the

supply. Manufacturers of alcohol indicated that they are working to increase the supply

to meet its demand. They must prevent having a shortage of this item and much worry

to people. Scarcity could happen at any moment. If this ever happen, there could be a

chaos in the economy. Having just enough supply are already causing hopelessness

and panic, what more if shortage happen?

Scarcity is the state of having a deficiency in quantity or number compared with

the demand. When this happens, there would be an increase in the price because

manufacturers might have a hard-time producing the said product and the only thing

they knew to recover is to increase its price. There are also instances that resellers are

taking advantage of the sudden increase in demand to increase its price, to have much

higher profit. They know that people will purchase alcohol despite of its price.

Consumers are now getting hot-headed for the dishonesty of these greedy resellers

show. Some consumers are already doing prejudges to manufacturers without even

knowing that they are not the only ones who are having a hard-time with this crisis,

manufacturers also due to some restrictions.

Having an unexpected situation like this COVID-19 outbreak affects many

aspects. This is a lesson for us to be prepared at all times. This situation also shows us
what kind of persons are we. Whether if we are willing to take risk and do our best to

save our loved ones or fellowmen, are we the kind of person who panics and talks a lot,

or are we the greedy and opportunity taker. We must take note that money can be

recovered but our lives can’t go back to life once it is taken.

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