Logistics industry has been dramatically impacted by COVID pandemic. The industry has experienced bull$-$whip like effect of demand for transportation. To respond to these volatile capacity challenges, the industry responded by transportation price hike of approximately $10\%.$ What do you think the impact of this transportation price increase was on the economy? Since the transportation cost is a relatively significant portion of the total cost, the price hike translated into more expensive goods and services, which lowered the demand by about the same percentage. As we have seen it resulted in often empty shelves across many types of stores and industries. Very little, since transportation is considered to have a derived type of demand and at aggregate transportation demand tends to be inelastic.According to Laws of Squares there was a corresponding exponential decline in demand for goods.