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Market Supply Project Essay

375 words - 2 pages

BAN OF CHINA MADE PET TREATS SUPPLYINTRODUCTIONAs raising fears of pet's health issue, pet specialty retailer (PETCO) in the United States banned cat and dog food supply from china. As per investigations it was known that more than 4,800 complaints reported of pet illnesses and more than 1,000 reported of dog deaths after pets ate Chinese-made chicken, duck or sweet potato jerky treats.The main concern was about ...view middle of the document...

The market supply in United States dramatically goes down due to lack of buyers by the end of the year.ECONOMIC ANALYSISThe focus of our economic analysis is the market for pet food from china. Since the quality was not good the supply of about 50% of China Jerky treats sold by PETCO has been banned. Based on quality, the quantity of supply has decreased which shifts the supply curve from right to left and the price of an input also goes down finally.GRAPHICAL REPRESENTATION OF DECREASE IN SUPPLY OF JERKY TREATSP S2S1P1P2QThe market supply curve of Jerky treats from China shifts to the right due to its quality failure. This cause equilibrium price fall due to its quality failure and the equilibrium quantity also falls. The market price has to rise to eliminate a potential shortage of good at the initial price as well as increase in quality of the produce to increase its supply in future.CONCLUSIONIn order to increase the productivity in terms of price and quantity of Jerky treats in the current market, the quality has to be raised to get back the customers and to stay in the market.

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