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Demand and Supply

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Factors affect demand: the price of related products, the income, tastes, expectations and number of consumers.
1) Price of related products. Since other meat products such as pork, lamb, chicken is the called substitute. Their prices are relatively high. Although pork prices, it does not affect their needs. Consumers will not turn to buy other meat instead of pork. Therefore, demand of pork is still increasing.
2) Income. Since people's living standards and income improve, demand of meat is increasing because people are more willing to purchase meat. Corporate has improved employees’ wages a lot since last year. Corporate profits prompt employers and employees income faster and income growth of urban and rural residents reached a new high in recent years. Income increase is directly related to the improvement of people's living standards. Meat is a standard measure of living standards among Chinese residents. Thus income increases, people's consumption of the capital increases, living standards improves, demand for pork increased. Additionally, pork is normal goods compared with other food, such as vegetables. So demand for them increases when consumer income rises.
3) People's preferences and tastes. When tastes change in favor of a good, more people want to buy it at any given price, so demand will increase. Pork is the main kind of meat eaten in most regions of China, and also the main source of nutrition people think. Pork is relatively easy to cook in traditional Chinese food. Although the price of pork is increasing, demand has not been much affected because people like consuming pork very much.
4) Consumer expectations. Bird flu occurred in some regions in China. Despite a reduction in the supply of bird flu chicken in a certain extent, the greater impact is expected for consumers’ expectation. The number of consumers reduced due to psychological

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