Demand and Price Are Falling for Lobster
Surprise, surprise. Demand for lobsters is down, supply is up, and prices have fallen. Even the NT Times now understands that markets actually work. Now maybe they and politicians can understand that after a natural disaster when demand for water, hotel rooms, ice gasoline, generators or chain saws goes up, and supply falls, prices naturally go up. Not because of price gouging, but because of market forces.
5 Comments:
Mark,
The hyperlink has an extra http. See below.
http://http//www.nytimes.com/2008/09/02/us/02lobster.html?_r=1&ref=us&oref=slogin
David
Prices go up naturally when demand is high. Is natural "good"? If I am in a taxi and I start to feel sick and tell the driver to change destinataions and take me to the hospital and he says the fee to go to the hospital is $1000 is that good? When people get angry the naturally try to kill eachother. But we have laws to protect eachother from our natural tendencies.
Anon,
You can't be serious.
Falling prices on lobster due to demand destruction because people have returned to viewing it as a luxury food after years of high consumption.
Sounds to me like consumer spending is contracting a bit. It's a good indicator of an economic downturn.
Lobster prices are down? Pinch me!
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