Exampls of Price Mechanism in China

In current long time in China, a nationwide noteworthy tea called Xihu Longjing teatime is allocated to buyers using the scathe mechanism. This kind of tea is produced only in one place, Xihu, or West Lake, in Zhejiang Province in China, and is very bloodsucking on weather. If in one class there is frost in organise in which Longjing Tea is harvest and produced, the measuring rod of output signal will plummet seriously. This shifts the yield curve to the left in a large scale, which makes the charge high-rocket to the new residuum point by moving along the demand curve. Then in this family Longjing Tea will become a kind of luxurious drink.Only rich state ar able and have the willingness to purchase, who compliments this as a way to build off their wealth. I think the federation should use the monetary value mechanism to escort for whom this good is produced because as rargonness, luxury, as fountainhead as consumption for enjoyment, the change of the outlay will no t make big(p) effect on the living smirch of the nitty-gritty class and disadvantaged consumers. hurt mechanism in the market of Longjing Tea has no impact on friendly honor but improve aptitude of allocation. Also in China, vegetables and meat are products that are not allocated by the terms mechanism.Instead the price is stipulated by the presidency. Although vegetable production and transportation, like Longjing Tea mentioned above, are touch by seasonal climate, the Chinese government makes its effort to stabilize the price. I weigh that the society should not use price mechanism to allocate vegetables and meat because they are daily necessities, which are produced for all people, the riches, the middle classes, as well as the poors. I think government should spend most of their revenue to stabilize the increasing price in order to gain equity and the stability of the society.