News Analysis Activity Objective: Connect economic theory with real-world events by researching and analyzing recent news articles that illustrate supply and demand dynamics. Activity Details: Preparation: •research a recent news article on topics such as fuel prices, rice prices, or airfares. Your Task: • Analyze your chosen article, focusing on the factors that impacted supply and/or demand. • Consider how these factors influenced market prices and discuss potential outcomes if these trends continue. Guiding Questions (to be answered in your paper): 1. What is the main issue presented in the news article? 2. What specific product or service is being affected? 3. What are the factors influencing supply? (e.g., production costs, weather, regulations) 4. What are the factors influencing demand? (e.g., consumer preferences, income, prices of substitutes or complements) 5. How did these changes in supply or demand affect the price? 6. Was there a surplus or shortage in the market? Explain. 7. How did consumers and producers respond to these changes? 8. What are the possible long-term effects if the trend continues? 9. What policy recommendations or business strategies could help stabilize the situation? 10. As a student of entrepreneurship, what lessons can you take from this situation? Output Requirements: Your final output should include the following handwritten sections: 3. Introduction 4. Content of the News 5. News Summary 6. Analysis of Supply and Demand 7. Discussion of Market Impact 8. Reflective Essay
Answer (1)
Answer:3. IntroductionPrices of basic goods often go up or down depending on how much is available and how many people want to buy them. This paper focuses on rice, a food staple in many countries. Recently, the price of rice has gone up around the world. I looked into a news article that talks about the reasons why this is happening and how it affects both buyers and sellers.4. Content of the NewsThe news article I chose talks about the rise in rice prices globally. It mentioned that India, one of the biggest rice exporters in the world, has stopped exporting some types of rice to protect their local supply. At the same time, countries like Thailand and Vietnam are also having problems with rice production because of bad weather like droughts and floods. This has caused a lot of concern for countries that depend on rice imports5. News Summary• India extended its rice export ban to control local prices.• Poor weather in other major rice-producing countries reduced their harvests.• More countries are trying to buy rice now, especially since wheat and other grains have also become expensive.• As a result, the global price of rice has gone up a lot.• Some governments and companies are now buying more rice than usual to avoid running out.6. Analysis of Supply and DemandSupply Side:• Bad weather lowered the amount of rice that could be grown.• India’s export ban reduced the global supply of rice.• Higher prices for things like fertilizer and fuel made it harder for farmers to grow rice.Demand Side:• More countries are buying rice because other grains are expensive.• Some buyers are stockpiling rice, which increases demand even more.• In many places, rice is a daily food, so people keep buying it even when the price rises.7. Discussion of Market ImpactThe result of lower supply and higher demand is a rise in rice prices. In some areas, there isn’t enough rice to go around, which creates a shortage. Poorer countries may struggle the most because they can’t afford the higher prices. On the other hand, some farmers and exporters in countries not affected by bans may benefit from the higher prices. The market is clearly affected, especially for low-income consumers.8. Reflective EssayThis situation shows how a product like rice can be affected by things like weather and government decisions. As a student learning about business, I see how important it is to plan for these kinds of risks. For example, if I were a rice seller, I would try to find more suppliers or grow locally. This also shows that business and the environment are connected. Entrepreneurs have to think ahead, especially when dealing with basic needs like food.9. Policy Recommendations / Business StrategiesCountries should support local farmers and invest in better farming tools.Governments can create rice reserves to help during shortages.Businesses can look into other products or crops in case rice becomes too expensive.Importing countries can try to trade with more suppliers, not just rely on one country.
