Economics response
Business Finance
Read the following article and answer the questions below: https://www.kqed.org/stateofhealth/24879/cows-milk-found-in-human-breast-milk-bought-online
Here are the discussion questions following your reading of the article “Cow’s Milk Found in Breast Milk Sold Online” by Shuka Kalantari.
1. Market is buyers and sellers transacting with one another. A market in breast milk, a precious commodity, is developing and expanding. The internet offers a new platform for these transactions. Consider the following two events and their impact on the market:
(a) New scientific studies demonstrate the numerous health benefits of breast milk for babies and mothers.
(b) Technological progress allows more premature babies to survive.
How do these two effects affect the market? What should happen to the price of breast milk? (Hint: think of the supply and demand diagram.)
2. Milk banks such as Mother’s Milk Bank in San Jose accept donations from moms (i.e. moms donating milk are not paid), pasteurize the breast milk and sell it. Yet milk banks are running out of milk. Why? What solution would you propose?
3. Ms. Sakamoto of the Mother’s Milk Bank notes that studies show that breast milk sold on the breast milk markets risks being contaminated with cow milk etc. She says that “these studies show that if moms are paid for their breast milk, these are the kind of problems we will see.” Do you agree with Ms. Sakamoto? Explain using economic thinking.
4. How would you solve problem of contamination risk in the breast milk market?
