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1)

During World War 2 over the course of the 1940’s the supply and the demand was at a high for a Cadillac has it soared from $1,745 to $3,497by 1949. As time went by inflation continue to fall. In 1946 prices picked up because of the prices of cars and what we need as consumers. Productive capacity was only based of manufacturing of military equipment, and resulted in goods shortages, savings has declined when the US entered the war.when the war ended in 1945 a wave of pent up demand was in place along with rationed goods sold on the black market. Over time U.S. inflation went up 4.2 percent, but it’s no where near that today. As lock down restrictions are slowing going away prices are rising especially the rise in automobiles prices for used cars in a since of supply and demand.They have some supply because of semi conductor shortage, but the demand for cars are at a high. Staggering rise in the measure of money include savings deposits, currency, and time deposits. Primarily the nature of governments stimulus we will see the return of inflation.

2) During times of War, demand in supplies were at the utmost importance. The military needed many different types of supplies to readily assists in accomplishing the mission that were in place. During World War II as the author explained, Cadillacs went from costing $1,745 to $3,497. One of the many reasons for that was because the business had to slow production in to produce tanks and aircraft engines for the US Military. Since the products that would have been made on a normal bases ceased, selling those vehicles at a higher cost would allow the business to still profit the same amount as if they were still on a producing the regular amount of vehicles. Unfortunately, the rise of inflation started to occur due to the strict lockdowns which increased unemployment and a shortage in supplies made that started to become increasingly in demand. To name one, lumber prices have increased to a 124% this year due to the demand for building materials.