Why Can't You Buy Anything Anymore? Well It's Not All The Virus' Fault | Economics Explained

The video explores the persistent issue of stock shortages, examining the impact of global supply chains and demand factors. It discusses how supply chain complexities and economic conditions contribute to shortages, while also analyzing market dynamics and pricing strategies. The video highlights sticky pricing and regulatory effects, explaining how these factors lead to market failures and stockouts.

What is one reason businesses might be running out of stock despite having a profit motive?

• They are intentionally limiting supply.

• They are unable to predict demand accurately.

• They are focusing on other markets.

• They are investing in new technologies.

How do global supply chains contribute to stock shortages?

• They are outdated and inefficient.

• They are complex and interconnected.

• They rely on a single supplier.

• They are too localized.

Why have household incomes not decreased significantly in some countries?

• Decrease in consumer spending.

• Increased government taxes.

• Loss of high-income jobs.

• Stability of white-collar jobs.

What effect do government stimulus efforts have on market demand?

• They reduce consumer spending.

• They increase demand for both essentials and luxuries.

• They stabilize prices.

• They decrease demand for luxury goods.

What is one reason for the increased demand for luxury goods during the pandemic?

• Increase in disposable income for some households.

• Shift in consumer preferences towards essentials.

• Decrease in luxury goods production.

• Government restrictions on luxury goods.

What is sticky pricing?

• The strategy of lowering prices to increase demand.

• The resistance to changing prices once set.

• The tendency for prices to fluctuate rapidly.

• The practice of setting prices based on competitor actions.

How do anti-price gouging laws affect market prices during emergencies?

• They allow prices to rise freely.

• They set a minimum price for goods.

• They prevent prices from rising too high.

• They encourage hoarding of goods.

What is a potential downside of anti-price gouging laws?

• They encourage price wars among retailers.

• They can result in product shortages.

• They cause market equilibrium to be achieved.

• They lead to increased competition.

Why might companies not raise prices even when demand is high?

• They are legally prohibited from doing so.

• They have already set marketing strategies at a certain price.

• They are trying to reduce production costs.

• They want to maintain customer loyalty.

How do scalpers contribute to market failures during shortages?

• They buy up limited supply and resell at higher prices.

• They sell goods at lower prices.

• They increase the supply of goods.

• They create new markets for goods.