案例分析-粉红鲑市场.pptVIP

The Market for pink salmon has a standardized product, for which price has substantially declined in recent years.;Initial Equilibrium;Changes in Equilibrium;Change in Supply;Also, high profit at price P1 encouraged many new fishers to enter the industry. As a result of these changes, the supply of pink salmon greatly increased and the supply curve shifted to the right, as from S1 to S2.;Change in Demand;As buyers’ incomes increased, consumers shifted demand away from canned fish and toward higher-quality fresh or frozen fish, including higher-quality species of salmon such as Chinook and Coho salmon. ;Moreover, the emergence of fish farming, in which salmon are raised in net pens, lowered the prices of substitute species. That, too, reduced the demand for pink salmon. The decrease of demand is represented by the leftward shift from D1 to D2. ;New Equilibrium;However, the equilibrium quantity of pink salmon increased, as represented by the move from Q1 to Q2. Both shifts of the curves reduced the equilibrium price, but equilibrium quantity increased because the increase in supply exceeded the decrease in demand.