Introduction
The global coronavirus pandemic greatly affected the market equilibrium in several markets for personal care, medical, and consumer products (Anonymous “Supply, Demand, and Shortages,” 2022). The increased demand for a range of products led to increased product costs. This research paper explains – how increased demand for these products and subsequent government actions to regulate prices led to shortages of several products, such as medical masks, sanitizers, and personal care products.
The paper explains that the government measures to regulate prices, namely the creation of price ceilings, created shortages of essential and personal care products. The author explains that the emergence of the price ceiling causes the market to deviate from its equilibrium point and creates a significant difference between supply and demand, artificially creating shortages. The paper’s author also notes that this process cannot be called an actual shortage, as it is not caused by a physical lack of goods but by the fact that consumers have begun to buy essential goods for stock. Nevertheless, the researcher notes that this deficit is temporary, and the market will return to an equilibrium position after a decrease in demand and an increase in supply caused by the increased production of these products.
The Teacher Shortage in the U.S.
There may also be shortages in the labor market for certain professionals. In the U.S., there is a severe shortage of teachers at all levels, which is projected to only worsen over time (Sutcher et al., 2019). This state of the labor market stems from the fact that all government programs currently in place in the U.S. are focused on recruiting new teachers but rarely aim to reduce turnover within the profession. The constant turnover of professionals is the main reason for the current shortage of teachers in the country.
The author explains that the high cost of education in the U.S. often forces young people to choose higher-paying professions to pay off their student debt. The demanding job of teaching, which has a relatively low average income, and the lack of attention to the teacher-training process are the main reasons why the profession is unpopular. Teachers who are sufficiently educated in this field are more likely to remain as teachers in the future. Therefore, the author suggests that in response to growing demand, systems should be implemented to retain teachers in their jobs. This system should include effective mentoring by more senior teachers and increasing salaries to increase the number of teachers working longer than a year.
Falling Demand for Environmentally Friendly Plastic and Paper
Finally, a recent paper on the changing supply and demand for innovative forms of packaging ware also describes the current market fluctuations and their equilibrium points. Despite the growing popularity of products made from recyclable and biodegradable plastics, their cost is increasing due to a decrease in supply. Difficulties in supply chains that emerged during the coronavirus led to higher production costs, altering the supply schedule (Oller, 2022). Moreover, the war in Ukraine has increased the cost of electricity, a high cost for producing environmentally friendly plastics and paper packages.
Conclusion
Thus, the supply shortages in the oil and gas market resulting from the war in Eastern Europe have led to a sharp increase in energy prices. It, in turn, has affected the cost of environmentally friendly packaging materials, reducing their attractiveness. Despite the continuous increase in demand for this product, its cost is increasing, which may lead to a drop in demand at the end of this year. Since demand for this product is elastic and there are many substitute products, the market may experience a short-term drop in demand in the coming years.
References
Oller, S. (2022). Big Food’s sustainable packaging goals hit supply and demand reality. Food Dive. Web.
Anonymous (2022). Supply, Demand, and Shortages: Regulation. Cato Institute, 45(2), 28-29. Web.
Sutcher, L., Darling-Hammond, L., & Carver-Thomas, D. (2019). Understanding teacher shortages: An analysis of teacher supply and demand in the United States. Education Policy Analysis Archives, 27(35). Web.