Market phenomenon
as is shown by the two graphs above, the average price of eggs was on the rise from 1990 to 1995 and the demand for them increased correspondingly. the graphs also indicate that during the period from 1995 to the price eggs declined, and so did the demand. the phenomenon is quite strange and worth studying. according to the law of market economy, the increase in demand results in higher prices. that is to say, when prices climb, the demand decreases, and when prices fall, the demand grows. now the reality was just the other way round.
the reasons for this strange phenomenon are obvious. during the period from 1990 to 1995 with the development of our socialist market economy peoples income, bonus and different kinds of benefits, increased rapidly. though the price of eggs rose gradually, the demand for them grew sharply, too. on the other hand, when the demand for eggs reached a certain point, it stopped rising because people began to spend more and more money on clothing, recreations and tours round the country and even round the world.
it is generally assumed that the epenses for tours accounted for a great part of the total consumption of the people in our country from 1995 to . as a result, it seemed reasonable that the demand for eggs declined during the same period of time.as far as im concerned, with the domestic poultry farming continuing to develop, the price of eggs is likely to decline because the demand for them is limited and the fall in consumption of them is also inevitable.
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