Peanut Product Recalls Student name

Key Points For Demand Industry fears impact on sales of unaffected foods. Consumers may tire of checking recall lists and begin shunning anything with peanuts. Past scares show this to be true.

Result on Demand The result is a decrease in the demand of peanuts.

Change in Demand

Key Points for Supply This recall is one of the largest, ever. (800 Recalls to date, and more expected) The Peanut Corp. Of America (PCA) expanded its recall to two years’ worth of productions. 1 Pound of peanuts end up in 100 lbs of other products.

Result on Supply The result is a decrease in the supply of peanuts.

Change in Supply

Conclusion The result of the peanut recall is a decrease in both supply and demand for peanuts. This will have a correlated effect on complement goods related to peanut products, by reducing their supply and demand as well. Substitute products of peanuts will have an increase in demand.

Article Reference Schmit, J. (2009, February 1). Peanut product recalls spread fast. USA Today