BULLISH ‘BAK CHANG’ MARKET
Summary
This news stated that the dumpling market will be “bullish” again during the time of Dragon Boat or Dumpling Festival . One of the dumpling sellers, Loh said that his dumplings would cost 50 sen more this year and another seller, Lor said he will sell his dumplings at the cost RM 2 more until end of the Dumpling Festival period. Normally, the price of ingredients increases by about 20% at this time of the year. When this festival ends, it will go down again. But at this year, the percentage of increase in price of ingredient become higher compared to last year. During the Dumpling Festival of the year, people usually accept the temporary price hike. Most people nowadays prefer buy dumplings instead of making their own because of the cost to prepare them and there is more variety available in market. Price hikes during this period are inevitable because the ingredients are in demand as people celebrate the festival. Demand and the higher cost of production push up the price of dumplings
Discussion
As during the period of Dumpling Festival, people will celebrate it with eating some dumplings. So in this period, the demand of the ingredient of dumplings will increase because increase in the number of people or seller of dumplings in purchasing the ingredients to make dumplings. The increase in demand of the ingredient will cause the price rises as shown in figure 1.
Next is the demand and supply of dumplings. In the festive season, the number of buyers for dumplings will increase, people will buy more dumplings from the market to celebrate the festival. The price of dumplings will increase due to the demand of dumplings increase. In this year, the price of ingredients of the dumplings has increase compared to last year. It will cause the cost of production of the dumplings become higher, thus the supplier will tend to produce less number of dumplings. Supply of dumplings will decrease because of the higher input price,...