The Global Chip Shortage – An Economic Pers

The global chip shortage severely impacted industries like automobiles, smartphones, and electronics, leading to higher prices, production cuts, and global inflationary trends. This situation highlights the interconnectedness of microeconomic decisions (supply, pricing, opportunity cost) and macroeconomic outcomes (GDP slowdown, trade imbalances). Assignment Instructions: Read the case and answer the following questions in 2–4 pages, integrating theory with current business realities. Use economic concepts, real examples, and brief data support wherever relevant. Questions: How did the chip shortage disrupt the law of demand and supply across key industries? Explain the impact of scarcity and opportunity cost on managerial decision-making. Discuss how the shortage influenced global inflation and production levels. Suggest possible policy or strategic measures governments and firms can adopt to prevent such disruptions in the future.

Managing a Ride in China

Uber’s expansion into China showcased the importance of understanding demand and supply dynamics in a competitive market. With price-sensitive consumers and fluctuating driver availability, Uber used surge pricing and incentives to balance the market. The case emphasizes how determinants of demand, elasticity, and forecasting influence managerial decisions. It enables students to apply demand-supply theories to practical pricing and strategic business problems. Write a 2–3 page reflection report as if you are a Manager at Uber China in 2016. Use first-person perspective (“I decided…”, “I observed…”) and explain how you used economic logic in your decisions. Your reflection should cover: How I identified shifts in demand and supply. How I adjusted pricing and driver incentives to manage equilibrium. How I forecasted demand using data analytics and elasticity patterns. What I learned about consumer behavior in emerging markets.