Presentation on theme: "? MUNSANG COLLEGE IP KA MAN Good evening. Today is 5/5. The price of pork in two major super was reduced to $19 per catty. The quantity demanded increased."— Presentation transcript:
Good evening. Today is 5/5. The price of pork in two major super was reduced to $19 per catty. The quantity demanded increased and queue is formed. Reported by Pork Pig. PEPE P1P1 Excess demand D S Q1Q1 QEQE
We have interviewed Mrs. Mc. Of coz … Pork in Supermarket is cheaper than wet market, that’s why I buy pork in supermarket, not in wet market.
As pork in the wet market and supermarkets are substitutes, the demand of pork in the wet market decreased. D1 D2 S P1 P2 Q1Q2
Let’s compare the price of pork between supermarket and wet market.
And the wholesalers suspected the only pig importer, Ng Fung Hong, sold pork to supermarket at a very low price. Their spokesman said that they would take vigorous action. After the supermarket slashed the price, the consumers were gone.
Today, 6/5, the wholesalers moved trucks to block entrances and exits at two slaughter houses after the importer refused to sell pork to them at the same price it offered Park’n Shop.
As the strike of wholesalers was hold, there was no supply of fresh pork in both market.
On 7/5, the dispute is settled down. The wholesalers asked Ng Fung Hong not to sell the pork to supermarket at a lower price. But the supermarket stated that they won’t change the price because this is their policy.
Now, let our reporter Amy Ip draw a conclusion. Thanks, Mr. Pork Pig. In this case, Park’ n Shop and wet market are in the non-price competition at first. But Park’n Shop wants to get a larger share of the market. It sets a price lower than the existing market price in order to attract more customers. When the price competition started, the government is asked to do something to stop Ng Fung Hong being the only importer of live pig from Mainland China.
It is good to buy pork at a lower price in supermarket than wet market. But I worry that after the supermarket capture the whole market, they may set a higher price as there is no competitor. Public will have to pay more. So, I agree that we should have more importers of live pig from China, in order to prevent the existence of monopoly.