Traditional economics essay

It takes on the economic outcome. Therefore, the classical concept of economic factors that render the pretension’s outcome is based on the idea that prosperity can maintain control and withstand out various situations. It centers on the assumption that cooperative diversity focuses on the primary difference between the two theories: the premise and exercise of free will. However, the neoclassical revolution looks at specific elements that may hinder the practice of free will (Encyclopedia Britannica, 2018). I decided to discuss the high demand for Lysol products. The pandemic created a fear that the classical economics broad approach to the increased market value of Lysol goods during the Covid-19 pandemic based on the severity of the situation, which made an impulse that considered business to increase production cost and take advantage of consumers.

On the other hand, the need for protection from the virus would be seen as a neoclassical economics primary approach and interest. That created a supply and demand situation for a higher market within limited productive resources like Lysol that render the market with restricted goods. Neoclassical economics mixes the cost of production concept from classical economics that takes on efficiency, total capacity, and potential decision-making from individual consumers (CFI, n.a.).

The covid-19 pandemic created a significant predicament throughout the country that affected millions of people as the rise of the Covid-19 virus spread throughout the country while continues to cause death and economic shortcoming among families. This idea indicates that the virus’s issues forced the country’s economic model to enable the government to shut down the country while shifting the business to change outcomes while, in some circumstances taking advantage of society (Baqaee and Emmanuel, 2020). Therefore, when it comes to a crisis, various pressure is placed on people to do things they usually would not do. Example go out and stock up on tissue paper, Lysol, and bleach products. Therefore, business owners take advantage of the circumstances, and increase products like Lysol to excessive amounts is a perfect example of economic supply and demand. That in many outcomes create the illegal practices of price increase of different products based on the pandemic’s concern. Yet, the struggle for a basic necessity like tissue paper, Lysol, and hand sanitizer is still in high demand as store shelve are empty which in all aspects is part of today’s current reality.

References

Baqaee, D., And Emmanuel, F. (2020). Supply versus demand: Unemployment and inflation in the Covid-19 recession, https://voxeu.org

Cfi. (n.a.). What is Neoclassical Economics https://corporatefinanceinstitute.com

Encyclopedia Britannica, (2018). Development Theory, https://www. britannica.com