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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 and
queue is formed. Reported by Pork Pig.
S
D
PE
Excess demand
P1
Q1
QE
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
S
D2
P1
P2
Q2
Q1
Let’s compare the price of pork
between supermarket and wet market.
After the supermarket slashed the
price, the consumers were gone.
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.
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.