Bethel College Market Impact of the Nashville Tornado Analysis
The response to the facilitator’s original post should be a minimum of 250 words. The student’s initial post must be supported by at least 3 scholarly reference(s). A minimum of two responses to other learners’ responses should be posted and should be no less than 100 words each. Every post should make use of sources (this includes response posts [at least 2 of them]).Suppose you are asked to do a market analysis in an area in which a natural disaster has recently occurred. (An example might be Nashville after the spring floods or New Orleans after Hurricane Katrina.)Other than building supplies (which is too easy :), choose a market for a good or service that will be affected.Will demand or supply be affected? (Even if it might be both, just choose one or the other to keep it simpler).What happens to equilibrium prices and output in this market? Draw a supply and demand graph for your own use, and then explain the process in detail.Choose a market that has not already been chosen by a classmate. Be creative and thoughtful!It would be even better if you can find an article that supports your analysis.Classmate #1A natural disaster that affected me in 2011 was the Joplin, MO Tornado. Natural disasters such as tornados have support from communities close by, and the destruction path is much smaller than that of a hurricane. Supply and demand, in this case, were better balanced because of communities close by (Zhiwen, 2021). The tornado struck Joplin Sunday afternoon, May 22, 2011, and is one of the deadliest in U.S. history. This was the second EF5 tornado in Missouri history, and the last one was in 1950. The tornado was a most a mile wide and left twenty-two miles of destruction. I remember this natural disaster like it was yesterday. Many people from Springfield like myself purchased water and supplies and made the hour drive to Joplin to help that Sunday evening. The destruction was devastating. One hundred fifty-eight people were killed, and more than 1100 people were injured. The grocery stores, hospitals, and hardware stores were leveled. More than fifty thousand people were without power, water, and many without homes. The demand for water was high, and supplies were at a minimum. Natural disasters create a high demand more many essential needs (Stewart, 2020). Many organizations cannot set their product's price and simply rely on success because the price is determined by supply and demand (Thomas & Maurice 2020). The equilibrium price drastically changes in this case because the demand for water was high and the supply was low. With supply so low, they had pallets of bottled water showing up from many different manufactures.ReferencesThomas, C. R., & Maurice, S. C. (2020). Managerial economics: Foundations of business analysis and strategy (13th ed.). McGraw-Hill/Irwin.Stewart, James. (2020). Energy Journal. Vol. 41 Issue 4, p129-151. 23p. DOI: 10.5547/01956574.41.4.jste. , Database: Business Source Premier Zhiwen Gong. (2021). Polish Journal of Environmental Studies. Vol. 30 Issue 2, p1677-1693. 17p. DOI: 10.15244/pjoes/126711. , Database: Academic Search Completehttps://www.tornadofacts.net/tornado-records/jopli...Classmate #2It is not a secret that natural disasters can have a substantial financial impact on local governments, and since emergency services are government funded, funding for those services can also be impacted (Chen, 2020). In 2020, the city of Nashville, Tennessee was hit hard. From COVID-19, protest, and the Christmas Day Bombing to an EF4 tornado that ripped through the city of Nashville. This tornado killed five people and left thousands without power (Bella & Bellware, 2020). When any type of disaster occurs, be it natural or manmade, emergency services are called out/expected to respond. This can be thought of as a supply and demand type of situation. Demand can simply be defined as a relationship between price and the quantity demanded.In the case of the 2020 March Tornado, emergency services were in high demand due to missing persons, downed power lines, structure collapses, car accidents, etc. While many government agencies do have a fund to cover these types of events, natural disasters are fairly unpredictable and costly (Chen, 2020). The amount of manpower required or necessary was high, which meant a lot of overtime for emergency service employees (for me this meant that I had no choice but to work as I was mandated). Police officers, EMT’s, dispatchers, firefighters, sheriffs’ deputies, etc do not work for free and were working 17-hour days with no days off. As the demand for emergency services increases so will the price for there services. The more manpower required means having to pay out those wages or overtime, which was necessary in this case. If there was a price ceiling on emergency services employee wages, meaning they would not be paid for overtime, that would drastically change things. This would affect the supply of these services, which would result in many people would not getting the services or help that they needed.ReferencesBella, T., & Bellware, K. (2020, March 3). Nashville tornado reportedly kills 5 people, leaves tens of thousands without power. The Washington Post.Chen, G. (2020). Assessing the Financial Impact of Natural Disasters on Local Governments. Public Budgeting & Finance, 40(1), 22–44. https://doi.org/10.1111/pbaf.12245Conant, J. L. (2014). Supply and Demand. In Encyclopedia of Business and Finance (3rd ed., Vol. 2, pp. 718-721). Macmillan Reference USA. https://link.gale.com/apps/doc/CX3727500303/GVRL?u...