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Running head: SUPPLY AND DEMAND

How Supply and Demand Affects Economy
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SUPPLY AND DEMAND
Businesses, states, and economies across the world are facing extraordinary difficulties as a result
of the COVID-19 epidemic. Companies are responding in a variety of ways to maintain market
stability, boost supply chain resilience, or pivot to new revenue streams. The market peak in
everyday demand for simple consumables such as respirator masks, gowns, visors, and swabs is a
major problem in the ongoing crisis. Also, in a situation where disease development is slowed, a
Kearney study predicts a market increase of around 1600 percent for masks.
Companies repurposing their manufacturing and R&D resources to help the war against COVID19 is one step that can be used through sectors and countries. Luxury labels like LVMH are moving
manufacturing lines from lipstick to hand sanitizer, industrial firms are developing hygienic masks,
luxury hotels are becoming quarantine centers, distilleries are producing disinfecting spirits, and
car companies are evaluating options for producing desperately required emergency equipment
like ventilators, for example.
Motivation behind repurposing
One of the top goals for most businesses during COVID-19 is to secure their employees while
maintaining activities going as much as possible. In certain situations (especially in
manufacturing), these two goals necessitate employees protecting themselves, such as by wearing
masks and raising their disinfectant usage.
In China, the government only permitted businesses to reopen production if they had enough face
masks for workers, among other things. This increased demand for such items, which outstripped
availability, prompting firms including Foxconn, an electronics manufacturer, to begin producing
face masks on their own, with the explicit goal of resuming manufacturing. These factories rapidly
built-up manufacturing capacities for masks and disinfectants that well-outstripped demand, and

SUPPLY AND DEMAND
they began providing free service to frontline medics and those fighting COVID-19 regularly.
Repurposing, on the other hand, benefits businesses in more ways than only protecting their
workers and helping the common good. Repurposing also allows them to maintain manufacturing
lines going through periods of low demand, produce modest sales, and improve their prestige.
Levels of complexity
Several manufacturing firms have begun to assess both their existing business's projected capacity
projections as well as the suitability of manufacturing elements for repurposing. The repurposing
of raw materials and parts, manpower, the manufacturing method, and machinery, as well as the
manufacturing site and its climate, are all on the table. (Muneer, T. 2007)
The commodity form would not apply to all ...