Help me study for my Management class. I’m stuck and don’t understand.
Peer Feedback Needed on a Research Proposal
In your response to a class peer, provide constructive feedback on his/her proposal.
APA formatting, proper in-text citations, and references are required as applicable.
Throughout our economics, especially centric within consumerism, we must constantly be testing and evaluating risk. According to Sharon DeWitte a professor of Anthropology from the University of South Carolina, there is need for a critical mass of people to interpret and understand the events leading up to, during, and potentially after a serious event such as the COVID-19 pandemic with a special consideration for economic instability understanding (DeWitte, 2020). Risk is something that is continually measured, analyzed, and when necessary, accepted based on the market that impacts that risk. There have been many examples of economic risk during the COVID-19 pandemic and one that stands out is when adaptation goes too far and becomes a manipulation of supply and demand, the very foundation of a market. But this is not limited to just a pandemic. Economic risk through the consumer market tends to happen with the basic law of demand is destabilized because of the events of the time. The points of economic equilibrium are varied throughout times of uncertainty and this perpetuates consumer risk. As the demand on the market increases at an unusual pace, supply must also increase but do so under restraint. When market equilibrium is not met but yet supply attempts to produce products to satisfy the market, the results in risk passed along unknowingly to the consumer.
Models of commodity differentiation shows that the equilibrium set is contractable (). But, during severe uncertainty and instability throughout the entire supply chain, this commodity differentiation is amplified. This has been seen throughout all major global economic shifts from war to financial crises. The early pandemic scenario of COVID-19 demonstrates risky products being brought to the U.S. consumer market with little oversight based on the unusually high demand for the product. An example of this, but not limited to, is the hand sanitizer market. The strain on the supply chain to increase production while maintaining safety standards contradicted the necessity for a shift in market equilibrium while also maintaining relative cost. This risk is compounded throughout its particular supply chain from the consumer through to the producer.
DeWitte, S. N. (2020). Social Inequality in Times of Pandemics. Anthropology News, 61(3), 14.
Covarrubias, E. (2011). The Equilibrium Set of Economies with a Continuous Consumption
Space. Journal of Mathematical Economics, 27(2), 137-142.