Thursday, February 2, 2012

Supply Disruptions Affects Market Prices

The earthquake and tsunami in Japan resulted in a supply disruption (think shifting the supply curve to the left) in 2011. As a result, the market price of those products (such as memory chips) started to rise, which is what the supply and demand model predicts with a shift of the supply curve to the left.

Additionally, flooding in Thailand is impacting the price and availability of external hard drives.

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