DEMAND AND SUPPLY

Demand and Supply - Case Study / Information

Written by Tham Chia Shing

NEW DELHI - The demand for poultry products is like to remain strong in the April-June period of this year, mainly due to this holiday period.

The market is currently well-balanced in terms of demand and supply, although profitability was still below average. The prices were very high during the January-March period. However, prices softened in March because of increased supply in April. On poultry feed, prices of corn has declined but soyameal prices has increased crazily. Therefore, the support price has been increased to result in higher production to satisfy the citizens needs. Also, the government has clarified that that import of genetically modified soyameal are allowed to India.

HAVE YOU EVER WONDERED ?



WHY IS THE MARKET CURRENTLY WELL BALANCED ALTHOUGH PROFITABILITY WAS STILL BELOW AVERAGE ?

This is because the demand and supply still exist in the equilibrium rate.

WHY IS THE PRICES OF POULTRY PRODUCTS SOFTENED IN MARCH ?

This is because there was increase in supply in April to help the citizens that demanded for reducing price.

WHY IS THERE AN INCREASE IN THE SUPPORT PRICE ?

This is because to increase production rate to satisfy the customers needs to maintain the economic structure.

WHY ARE GENETICALLY MODIFIED SOYAMEALS ALLOWED INTO INDIA ?

This is because to make sure the soyameals company in India reduces their price.

EXTRA INFORMATION

Demand is the desire and ability to consume certain quantities of a good and service at certain prices at a particular point of time.

Figure 1: Demand Curve

  Supply is the quantity of goods and services willing to be produced by firms or offered for sale at a particular time or particular place at alternative prices.

Figure 2: Supply Curve