Discuss increases and decreases in supply and demand.

Respond to two peers dicussion below onintermodal Transportation Seeking an Economic ImpactPlease read the article listed below and answer the following questions:Article: Understanding the Impact of Transportation on Economic DevelopmentHow can the growth of intermodal transportation affect the product’s supply and demand? Discuss the major points of the article. How do transportation costs affect others? Please be specific. Discuss increases and decreases in supply anddemand. mim of one reference.
Peer 1The growth of intermodal transportation affects the product’s supply and demand by determining the amount of product that can be distributed. Should there be an absence of transportation then the product volume is negligible as there isn’t enough physical space to move the product to the destination. This could increase demand but it would not cause any changes until the transportation issues were resolved as that is the limiting factor in this scenario. Should the costs of the transportation of the products increase or decrease then typically the price associated with the product would follow this trend as the supplier and buyer are not being charged as much in logistical cost as they could be, or vice versa. If the cost of transportation is increased then the cost of the product will have to increase at an equal or greater rate to accommodate the deficit in profitability that this causes. If the transportation cost is decreased, however, the produc price is decreased which would then spike the demand for the product as it would be more easily accessible to the public which could then lead to an increase in supply over the course of time. Some of the major points presented in “Understanding the Impact of Transportation on Economic Development”, are; “(a) relevant type of transportation investment, (b) data necessary to analyze the economic effect of the investment, (c) appropriate methodology to analyze the economic effect, and (d) the proper dissemination of the results and education of professionals as to the economic effects of transportation investment.”The first part of this relates to the dilemma faced by the modern business of what type of transportation is most beneficial and profitable for them to utilize in the business plans.Second refers to the research that the company needs to put into the type of transportation that’s available and use that data to identify the best options.This is testing to ensure that their method that they chose would be the best option.And last is informing the parties that need to be aware of the results of these findings. Primarily the policy makers within the organization that can effectuate changes so as to increase the profitability and effectiveness of their business’s strategy.Eberts, R. (n.d.). Understanding the impact of transportation on economic … Committee on Transportation and Economic Development Chairman: Norman Foster, Minnesota Department of Transportation. Retrieved January 1, 2022, from https://onlinepubs.trb.org/onlinepubs/millennium/00138.pdfPeer 2According to “What Is Intermodal Shipping…and Why Should Shippers Care?” the definition of intermodal shipping is “moving freight by two or more modes of transportation.” (2020). Growth of intermodal transportation can affect the product’s supply and demand by combining multiple transportation methods to help the supplier to reduce their costs which could help the customer save a few dollars at the cash register. This is a simplified statement on how intermodal transportation can affect supply and demand as there are many factors that affect the supply and demand and the ability to get products from their production to their destination.The article “Understanding the Impact of Transportation on Economic Development” goes through the impact on the transportation industry on our economy. (Eberts, n.d.) It reviews what resources that are needed to ensure that our transportation industry is being sustained and what avenues need to be taken to ensure that these resources are available. It goes on to review the future directions of transportation with expansion, technology that can increase the proficiency of our current transportation methods, along with research to understand the fundamental issues of the effects on the economy that the transportation industry has. The article then goes on to describe the data gathering and what deficiencies are there with the lack of data that is available. The article addresses that “studies are conducted using data that are aggregated by some level of government jurisdiction” to where “Studies performed at the state or national level fall far short”. (Eberts, n.d.) Lastly the article explains the “appropriate methodology to analyze the economic effect” (Eberts, n.d.) but because what happens at one end can affect the outcome at the other end, this takes the entire network to work together, so analyzing the methodology and ensuring all questions are answered is cumbersome to say the least and it is explained how increasingly complex this industry and the expansion of it has been hindered.Increase in transportation costs increase the cost of the producers to get their product to their destination. This increases the price per item which in turn will eventually get pushed off to the customer which will raise the price on the customer. Not only can this decrease the sales that are made to the customers, there are times when the increase of the transportation is too great for the producer that they cannot afford to pay the rates and have to look for a different vendor to supply their transportation needs. Finding a different vendor to supply the transportation could keep the producers transportation prices the same but the producer is also taking a chance with the items not arriving, not arriving on time, or even arriving damaged. If this happens the customers satisfaction goes down and the provider may risk negative reviews which can cause other customers to not purchase the items from that specific supplier. Since my husband’s works in the transportation industry, his job basically is to match the suppliers with trucks and get the trucks to their destination at a designated time so the retailer can get the trucks unloaded and the truck can get back on the road for the next pickup and delivery. I do not always understand the terminology he uses, but I get the general gist that when shipping rates increase, suppliers typically look at other more affordable transportation options and normally when transportation costs rise, there is no “cheaper” alternative. This is only one side of the transportation industry puzzle. There are times when it is not the fuel or prices in the economy that drive the transportation costs up, but it is the drivers themselves. Being a truck driver is a long hard job that not only keeps you away from your family, but can be very stressful and it takes a toll on your body because you are sitting still for several hours a day and you typically do not have the best diet when you eat on the road. Our truck drivers are thinning out and there currently is a nationwide shortage of drivers. Because of the lack of drivers, transportation companies such as Super T Transport is having to increases their rates because they are having to pay their drivers more. Another thing that many people do not think of, is those drivers who are what are known as “owner operators” have to take into consideration the cost of the truck and maintenance of the truck as there are costs and penalties if the driver breaks down while they are trying to make a delivery. This can also cause the product to be ruined if the truck is broken down for a long period of time and the load cannot be transferred to another truck.Increases and decreases in supply and demand are affected by many factors. There are several products that are very price sensitive and then there are those that are not price sensitive. The production will help set the price with the fixed and variable costs and one of the bigger variable costs is the ability to transport the products to the retailers where the consumers will then purchase it.References:Eberts, Randall (n.d.) “Understanding the Impact of Transportation on Economic Development” W.E. Upjohn Institute Retrieved on January 2, 2022 from https://onlinepubs.trb.org/onlinepubs/millennium/00138.pdf“What Is Intermodal Shipping…and Why Should Shippers Care?” (2020, August 4) retrieved on January 2, 2022 from https://www.up.com/customers/track-record/tr080420-what-is-intermodal-shipping.htm