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Economics1.0 Article Summary
The article with the given title “Fish demand ‘exceed UK sea supply’, which was posted by the guardian on Tuesday of 21st August 2012 is about UK meets ran out of fish problem and the country has to rely on the imported stock.
Today, UK met the problem of ran out of stock of fish and had to rely on the imported fish to maintain the stock. UK had already met the annual fish supplies in 2012 and reliant on imported cod and haddock. Most of the fish was consumed in UK was imported from outside the EU such as Iceland, Norway and China.
This report discussed about the analysis of demand and supply, elasticity and shortage of the fish in UK. In the end of the report, there is the conclusion of the whole analysis discussed was provided.
Demand is the amount of a good or service that a buyer is willing and able to buy at a particular time. (Hubbard, 2012)
Demographics defined as the characteristics of a population with respect to age, race and gender.
The Food Standards Agency recommends that “people should consume at least two portions of fish per week and it should be oily fish”. The increasing level of fish consumption because there are 49 million adult in UK required an extra 33 million portions of oily fish per week. Increasing level of fish consumption is caused by the demographics of population of adults in UK.
As pointed out, the increasing demographics of population of adults in UK will tend the increasing of the numbers of buyer. Therefore, there will be an increased demand of fish in UK when all other thing being equal (ceteris paribus assumption). So the shift of demand curve to right is caused by non-price determinant which is population of adults increased. The demand curve shifted to the rights, D1 to D2, is as shown in Figure 1.1. Due to there is shifted of demand curve and consequently new equilibrium quantity and price of the fish as shown in Figure 1.1. The equilibrium of...