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The Aporkalypse For some people, there are no two words more terrifying than bacon shortage. This was the predicted destiny for 2013. Fortunately, this forecast
The "Aporkalypse" For some people, there are no two words more terrifying than bacon shortage. This was the predicted destiny for 2013. Fortunately, this forecast was merely hyperbole, but the story is a great example of the impact of supply shocks on short-run aggregate supply. The problem began with a major drought in the American Midwest, which caused the price of pig feed to skyrocket. This rise in input prices made the cost of raising a herd of pigs problematic for many farmers. Ultimately, these farmers were forced to "downsize their herds," which led to a sudden supply shock in the meat industry. This article does a great job explaining how a surprise price increase in an important factor of production (pig feed) resulted in a macroeconomic supply shock. Discuss how supply shocks can impact an industry? Provide details from the article and include an example of how a different industry could be impacted by a supply shock. FIND IT: Joe Satran, "Bacon Shortage 'Aporkalypse' Theoretically Possible, but Highly Unlikely, Given Basic Economics," Huffington Post, September 28, 2012, huffingtonpost.com
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