Pfizer Macroeconomics - Term Paper Example Unemployment is also another macroeconomic variable that affect the company’s’ supply and demand. When the percentage of the unemployed is high, the market for medicines is low. This is because the unemployed will prefer buying the cheaper and the local medicines that are available in their location. Thus, unemployment leads to low sales in Pfizer pharmaceuticals (Gupta, 2004). Inflation also has affected the supply and demand of Pfizer pharmaceuticals. This happens when the economies of the countries that the firm supplies its products grows and pushes all prices significantly over a particular time above the actual utility value of goods and services. When there is cost-push inflation, the company is forced to pass the cost to the consumers leading to increased prices. The result from the cost-pull inflation is that there is low demand for our products and usually our competitors take advantage of the situation. Also, interest rate is another variable that affect the demand and supply of our medicines.
