according
to new straits times 5 Oct. 2012, price of infant formula milk up, some
producers of infant formula milk have increase its price by as much as RM15 per
kg here in the past two weeks, parents might have to fork out an additional RM
50 a month for the product, increases price of infant formula milk it's because
the company improved the ingredients in the milk.
Infant
formula milk is, is milk manufactured for baby food, commonly the make it to powder,
we just need put hot water and shake it .maybe in Europe country it’s really
hard to see infant formula milk they just sell fresh milk. but for us Malaysian,
infant formula milk is so common, we can easily see it anywhere, and infant formula
milk also very best seller in Malaysian, because many mother more trust infant
formula milk than fresh milk for their baby, because the vitamin in the infant formula
milk are suitable for baby.
breast milk is the best milk for infant but, most
of working mother dependent of the infant formula milk, this is because some
mother can’t produce their breast milk because some
reason also working mother juts have less time to take care their infant so their
prefer infant formula milk because more easily and not waste time, now if the
price of infant formula milk up, household with young children were spending as
much as RM 500 per month on milk.
household is having income may cannot afford buy
the same quantity of infant formula milk
as before as infant formula milk is in a
high price now, so price of infant
formula milk become elastic ,consumer will decreases the quantity of infant
formula milk buy or maybe they will stop
buying infant formula milk at all.
When
some household get higher income, they may afford to buy of infant formula milk
no matter how high the price.
Because infant formula milk is elastic, so there
are many of substitute of infant formula milk in the market like instant baby food,
instant baby food is cheaper and more vitamin and more variety of flavor.
in the demand curve ,the demand of the infant
formula milk will shifts to the left ,the equilibrium price will decrease,
because infant formula milk is inelastic so consumer will have many alternative
for baby food, if the price go up they will change to other alternative it's
more cheaper.
The alternative for infant formula milk is instant
baby food ,we can get instant baby food easily in anywhere ,instant baby food
become no 1 alternative because we can easily get it, more vitamin because the
ingredients included vegetables, fruits and meat, they also have many variance
of flavor than infant formula milk and off course more cheaper.
Because
of this the demand of instant baby food is increase ,every mother who have baby
or infant want buy it.so it become shortage, because the supply is laser than
demand, after that the price will increase because no goods in the market, and
it will causes of black market.
Other alternative is make they make baby food by
they self, they mix rice, vegetables and meat together and cook it until very
soft or cut fruits to the small piece and feed the baby, and this baby food is
more cheaper and natural so all the mothers didn’t worry about the healthier
because it not contain any chemical in the food. This way is usefully for
mothers who didn’t go to work or housewife , if working mother they don’t have
time to do all that think, because it spend a lot of time ,so working mother
were willing to pay as much as they can to buy instant baby food or infant
formula milk, so for the housewife they will change to traditional baby food
which mean they will make the food by they self ,so it will causes the demand
of the vegetables, fruit , rice and meat will goes up , so if the supply will
remain the same and not increases it will become shortages ,but vegetables ,
fruits , rice and meat the supply is more increases that other goods, so this
not will affected to the price .
As we can see in the graph 3 both of the supply
and demand are increases so is not affected to the price, the price will remain
to the original price.
So, consumer will change to other alternative goods
and alternative baby food demand will increases but some goods the supply will
not increases so become shortages and the price will also go up, but some goods
when demand are increases the supply goods also will increases, this goods
prices will remain to original price.
Company of infant formula milk want to increase
the demand, they must reduce their price, if their reduce the
price the demand curve will change back to the normal because consumer are willing to buy the product, so the demand will increase to the normal, If the
infant formula milk demand keeps decreasing the company will getting loss
because the revenue is lesser than the expenses.
In the conclusion infant formula milk price goes up,
will affected many mothers but not all, the price will not affected working
mother because they willing to buy although the price is high, because they
don’t have time to go to the alternative baby food, but it will affected housewife
because they have more time to think alternative baby food much cheaper than
infant formula milk, they also can make baby food by their self.
Although
vegetable ,fruit ,meat and rice can increases supply easily but they also have
season, in some season like raining season or fry season the supply of fruits,
meat and rice will decreases so it also will causes shortages and the price
will go up.
price
of infant formula milk must reduce, so most all alternative for infant formula
milk also will reduce the price .so if the infant formula milk price are
decrease all the consumer will willing to buy, and the alternative product
price also back to the normal. If not, if the price still high and lowest
income mothers will give their infant breast milk, because it’s free.
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