Would you break the law if it were lucrative enough? How lucrative you say?
How about $40 per unit. No its not meth, its something much more dangerous you'd
be smuggling…something that could take a chunk out of you. Recently a fishmonger
weighed the pros and cons of smuggling the illegal snakehead fish in New York. Sadly it
didn't work out for him since he got caught and now must face the consequences. The
economics behind this escapade though are pretty interesting. Mr. Wu (the fish monger)
would sell snakehead soup for close to forty dollars a bowl. The demand for this bizarre
delicacy was obviously very high since he could charge an arm and a leg just for a bowl
of the stuff. Not to mention there was enough demand that he would risk getting some
major consequences for breaking the law if caught. One must deduce then that the reason
price is so high is because the supply doesn’ t meet demand causing a flux in price by
creating a second market. The invisible hand of the market place will always move the
price of an item to equilibrium…even illegal ones. As long as snakehead fish are still
in high demand, the supply will continue to rise-no matter the cost of life or limb. Feel
free to read up here.