Financial management principles promoted at the national level can be factors that determine the different economic performance of individual businesses, including supply and demand. The current monetary policy of the United States assumes free conditions for the development of entrepreneurial activities. Miranda-Agrippino and Rey (2020) highlight such policy features as promoting an open market, reducing domestic credit, and avoiding international liquidity. In other words, the responsible authorities encourage active market relationships within the country. Fiscal policy, in turn, is in a tenser state due to social challenges. Rickman and Wang (2020) analyze this topic and mention negative tax influences from local and federal authorities. In the context of the COVID-10 pandemic, the incomes of many categories of citizens have decreased significantly, and to replenish the budget, the government has to tighten control over the receipts of funds to the treasury.
Given the current opportunities and challenges, one may analyze a particular product in the context of supply and demand from the perspective of monetary and fiscal factors. The drug Ibuprofen manufactured by Equate (Walmart’s sub-brand) is one of the most sought-after products of this manufacturer (“Equate Ibuprofen tablets,” 2021). Nevertheless, the aspects of monetary and fiscal policies can play a potential role in the formation of consumer interest in this product and its output capacity. Brinca et al. (2020) cites the terms of supply and demand shocks and associates them with the current pandemic, explaining the inability of manufacturers to produce and market goods at given prices. From a monetary policy standpoint, profitable trading conditions are created, and Equate’s representatives can count on successful sales. Regarding fiscal policy, despite tax challenges, this manufacturer is unlikely to face significant problems. Equate’s Ibuprofen is one of the most affordable in its price category, and this is a popular drug used to relieve the symptoms of coronavirus. Therefore, despite potentially negative implications, Equate’s financial performance is unlikely to decline, and production and sales will remain robust.
References
Equate Ibuprofen tablets, 200 mg, pain reliever and fever reducer, 500 count. (2021). Walmart. Web.
Brinca, P., Duarte, J. B., & Faria-e-Castro, M. (2020). Is the COVID-19 pandemic a supply or a demand shock? Economic Synopses, (31), 1-3.
Miranda-Agrippino, S., & Rey, H. (2020). US monetary policy and the global financial cycle. The Review of Economic Studies, 87(6), 2754-2776.
Rickman, D., & Wang, H. (2020). US state and local fiscal policy and economic activity: Do we know more now? Journal of Economic Surveys, 34(2), 424-465.