Reference no: EM133824631

Part 1:
Discussion Topic
Give an example of supply and demand market price changes that you or a family member have experienced or that you have learned about through the news media during or after a hurricane, typhoon, tsunami, fire, flood, mudslide, earthquake, or other natural disaster. If prices went up, did you think it was fair? Did you think it was ethical? Explain why you feel that way. How did this affect you? If you did not personally experience the disaster, put yourself in the shoes of someone who did, and answer the questions hypothetically. (minimum 200 words) Get Expert Academic Guidance Now!

Part 2:
Reply to this post by another student:
During COVID-19, I noticed significant supply-and-demand price changes for cleaning products. The demand for hand sanitizer, disinfectant wipes, and cleaning agents skyrocketed due to the virus spread and efforts to prevent infection. At the same time, many suppliers faced factory closures, shipping delays, and labor shortages, driving product shortages and price hikes.
I remember going to the store to find empty shelves. Once restocked, merchandise was often marked up in price compared to before the pandemic. Online shopping showed similar excessive price increases. I tried to order a large bottle of hand sanitizer for my office, and I remember the local stores were sold out, so I went online. Large bottles of sanitizer that once sold for $15 to $20 suddenly went for $50 to $75.
While I did not like or agree with paying the higher prices then, I now see some rational justification for the price adjustments. Suppose you think of this situation economically; supply and demand dynamics significantly increase prices. Higher prices aid in rationing supply availability and reduce the chances of hoarding. Without rationing measures, many people would not have access to supplies. Additionally, many companies faced increased expenses, seeing price hikes for production, shipping, and materials.
From an ethical perspective, there were many excessive and exploitative price increases. Many consumers felt vulnerable during the global crisis, and some businesses took advantage of people's fears to turn more significant profits. Society expects companies to act responsibly, even more so during global trying times, so this behavior contradicts expectations. Bazerman and Moore (2013) explain that benchmarks for fairness drive most people to expect stable prices during crises or moderate increases to reflect supply chain constraints, not abuse of the system for excessive profit.
From 2019 to 2020, I began to become more cautious about where I shopped and what I bought because of the responses of many businesses. I avoided retailers that appeared to be excessively raising prices. Fortunately, I had a stable job and steady income, but many lacked the same backing. If I put myself in the shoes of those struggling, I would feel frustrated and hopelessbecause of the economic system. Financial abilities should not limit access to essential supplies, especially during a disaster. (no minimum, just a good response to this post)