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The laws of supply & demand

Discussion in 'Off-Topic' started by Dacar92, Apr 23, 2008.

  1. Dacar92

    Dacar92 Community, Amazon, DH Moderator & Inc Clan Officer

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    The laws of supply & demand

    Looks like someone has figured out that if you limit supply you can get a better price. Isn't it interesting that we do not live in the Soviet Union of the 1970's yet we have food rationing beginning in our backyards. What is next? Today they say there "are no plans to limit food purchases."

    ...yet. Wait until another industry (like milk or flour) sees what happened to the price of rice.


    Comments?
     
  2. Dii Legend

    Dii Legend Banned

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    There was a somewhat similar discussion about the price of gasoline/oil at work earlier.
     
  3. Thyiad

    Thyiad Moderator Single Player, D2 Assassin, Barbarian

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    Re: The laws of supply & demand

    Great advertising ploy.

    "Ooh it's rare, it must be good."
     
  4. Dacar92

    Dacar92 Community, Amazon, DH Moderator & Inc Clan Officer

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    Re: The laws of supply & demand

    Yes well, isn't it true that the supply of oil hasn't really increased much over the last decade? Look what has happened to the demand and the price. Can you say Asia?



     
  5. buttershug

    buttershug IncGamers Member

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    Re: The laws of supply & demand

    A major foriegn food agency said today that they can feed one and half million fewer people this year because of rising food prices.

    And you are not blaming Wally World for the limited supply of rice are you?

    And how many regular people buy more than 200lbs of rice at a time?
    Don't forget this is Sam's Club. I bought shampoo there and it was a big enough container to last me a year or more.
     
  6. Anakha1

    Anakha1 Banned

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    Re: The laws of supply & demand

    They should have taken that lesson from drug providers or the opium farmers in Afghanistan. They figured that out decades ago.



     
  7. Bortaz

    Bortaz Banned

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    Re: The laws of supply & demand

    Do these downturns in supply of rice and such have anything to do with more farmers moving to corn production in hopes of making money in the alternative fuel frenzy?

    Well, when you only bathe twice a month...

    What do you expect, Stinky?



     
  8. superdave

    superdave IncGamers Member

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    Re: The laws of supply & demand


    you still have hair old man?



     
  9. Dacar92

    Dacar92 Community, Amazon, DH Moderator & Inc Clan Officer

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    Re: The laws of supply & demand

    Don't know. I believe most rice is grown in Asia. I further believe most corn is grown in North America, or at least not in Asia. Maybe that's a misconception. I'll look it up.



     
  10. Merick

    Merick IncGamers Member

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    Re: The laws of supply & demand

    I don't know of any rice patties in the U.S., but isn't the food we send as aid almost all rice? Whenever they show footage on the news, it's always rice. Maybe we just buy it from somewhere else.



     
  11. Holysinner

    Holysinner IncGamers Member

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    Re: The laws of supply & demand

    There are rice farms in the 18 Upper Gulf Coast counties of Texas (known as the Rice Belt) - think Beaumont area. One of my former colleagues at work sold his rice farm in the 90's to do entry level computer technical support because it was such hard going at rice farming.

    I have no idea where else in the States rice is grown (though the rice growing area may well extend into Louisiana), and I'm sure you guys are right that most of the rice we consume is imported.

    Edit: According to Wikipedia,
    We're not among the top 11 producers worldwide, and that article doesn't say how much we import.

    As long as it's not the government doing the rationing (thereby constraining all buyers and sellers), I don't see why it's a problem.
     
  12. buttershug

    buttershug IncGamers Member

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    Re: The laws of supply & demand


    A growing world food shortage and increased cost of transportation is not a problem?



     
  13. Holysinner

    Holysinner IncGamers Member

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    Re: The laws of supply & demand

    No, Sam's club limiting how much rice it's customer's can buy (which Dacar labeled rationing) is not a problem.
     
  14. buttershug

    buttershug IncGamers Member

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    Re: The laws of supply & demand

    The reason they are, is the problem.
    I've read a few news stories in the last few months about the pending rise in food costs.



     
  15. Bortaz

    Bortaz Banned

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    Re: The laws of supply & demand

    So, fuel costs is the reason?
     
  16. buttershug

    buttershug IncGamers Member

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    Re: The laws of supply & demand

    And unstable weather.
    Plus a growing world population.

    But don't forget Walmart became the world's largest corporation by having the lowest prices. So I really doubt their bulk outlet is going to put limit on what people can buy without a reason. And certainly not to raise prices.



     
  17. Dacar92

    Dacar92 Community, Amazon, DH Moderator & Inc Clan Officer

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    Re: The laws of supply & demand

    The two are linked in one way: the increased cost of (seemingly) everything. Fuel costs rise and we pay that in increased freight charges. Increased freight charges to the stores are passed on to the consumer in the price we pay for whatever it is. I do not believe for a minute that the price of rice today is a direct result of, and only because of, the price of oil. No one is going to absorb extra charges whether they be for freight, packaging or the product itself. Although some of my customers think I should absorb all material cost increases.


    My somewhat sarcastic note that someone figured out the laws of supply and demand was just that: a sarcastic comment meant to get us to think. Are Asian farmers controlling supply to get a better price? Price fixing may be illegal in the US and Europe, but is it in Asia for exports?

    I am nervous about this situation. Inflation seems to be on the loose. Prices are rising for almost everything. Oil was first because of the giant sucking sound coming from China and India. The world revolves around oil.
     
  18. buttershug

    buttershug IncGamers Member

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    Re: The laws of supply & demand

    And the inflation is not based on an overheated economy.

    And earlier I forgot to mention decreasing arable land.
     
  19. SaroDarksbane

    SaroDarksbane IncGamers Site Pal

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    Re: The laws of supply & demand

    *shrug*

    What's there to comment about?



     
  20. Yaboosh

    Yaboosh IncGamers Member

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    Re: The laws of supply & demand

    Breweries are getting pounded because of severe hops and malt shortages. The reasons are many: fuel costs, moves to corn production for ethanol, the weakness of the dollar increasing the amount of competition for our domestic products, increasing beer production, underpriced raw goods, etc etc.

    This is happening to almost all of the farmed products out there. Just ask a local pizzeria how their flour prices have jumped this year. We are talking quadrupling prices at least.

    Some breweries are paying $60 a pound for poor quality hops when a year ago they were paying $5 for great quality hops.
     

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