100% (1)
Pages:
1 pages/≈275 words
Sources:
2
Style:
APA
Subject:
Education
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 3.96
Topic:

DQS1: Impact of unrest on the economy

Essay Instructions:
-How might such unrest impact the individual demand and supply of goods and resources in the affected country? What happens to market equilibrium, equilibrium prices and quantities; and wages and quantities of resources? Would all products be affected in the same way, or would there be some exceptions? -How would international trade be affected?
Essay Sample Content Preview:

Impact of unrest on the economy
Name:
Institution:
Date:
Social, political and labor unrests affect a country’s economy as there is a disruption of production, and foreign direct investment is most likely to decline. Consequently, unrest affects the prices of goods and services through the market forces of demands and supply. Domestic production may also decline, causing a supply shortage which may persist in the economy if not offset by cheaper imports. Reduced supply combined with increased demand for goods in turn leads to price hikes especially on food and petroleum products. Political unrests in the Middle East have led to price hikes for petroleum products in the domestic and international market causing increased production costs (Fitzgerald, 2013).
Unrest causes market disequilibrium because there will be a fall in supply from domestic suppliers leading to a leftward shift in the supply curve. However, market demand tends to be the same in the short run and for there to be equilibrium there is an increase in prices and fewer goods in the market. Over time, consumers may cut their consumption leading to a fall...
Updated on
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
Sign In
Not register? Register Now!