Saturday, May 15, 2010

Supply & Demand, N.C. Oysters and Oil

From the Raleigh News and Observer.

Yep. Supply and demand in action. Supply shifts back, price goes up.

What should happen to the price of farm-raised oysters, if anything?


Hat tip: env-econ.net

4 comments:

Jacob Stanley said...

Regarding the question to farm raised oysters, I believe it depends on their locations. I think if they were located in or near the gulf, and possibly considering if they were damaged or not (from the pollution), they would more than not carry the same price as those coming straight from the Gulf. This can be attributed to the fact that since there is a possible decrease in the Gulf's stock of available oysters. However, if they (farm-raised) are from other locations, say closer to N.C., then we should see almost a resemblance to substitute goods. My reasoning here is that farm raised oysters can be substituted for wild oysters, kind of like free-range chicken versus hormone filled caged chicken. At least that is how I understand it.

Wanda Lewis said...

I think that the price of farm raised oysters will go up. Since farm raised oysters are a substitute for oysters from the sea, people will begin wanting them, since regular oysters are going up in price due to the oil spill. Since more people will be demanding farm raised oysters, their will then possibly be a shortage of oysters. When alot of people begin demanding a product, and a shortage arises, then prices must increase to create a stabile market.

Joel Garner said...

To me in understanding that approximately 60-80% of America's Oyster supply comes from the Gulf I expect Prices to sky rocket. The substitution ability at least in North Carolina is just not here. Gulf waters are different than local oysters of NC in regeneration and a combination of attributes. Wild oyster abundance is not there and with every other commodity how long will it take to deplete our resources as we have done in the past with Trout and other species to ruin our wild oyster grounds.

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