Tuesday, July 03, 2007

Supply and demand in action 

I think this, for example, was predictable.
The price of machetes has halved in parts of Nigeria since the end of general elections in April because demand from thugs sponsored by politicians has subsided, the state-owned News Agency of Nigeria reported.

..."A price survey on machetes, which served as a popular weapon among political thugs in the state, indicated ... a drop in the price of the implement," NAN reported over the weekend....

"Before the conduct of the general elections, I was selling a minimum of seven machetes daily but can hardly sell one a day now," said Usman Masi, a trader quoted by NAN.

The price has fallen 50%.

For extra credit, what's the elasticity of supply of machetes in Nigeria?

HT: A departmental colleague, also mentioned by The Economist this AM.