Using economic theories, explain the oyster shortage in Singapore in the year 2008.

In 2008, amidst complaints of rising inflation and stagnating wages, Singapore faced its first ever major food crisis. Oysters were suddenly in short supply, much to the alarm of hawkers and consumers alike. After intense analysis, it can be assumed that this shortage is due to various reasons, the most important factor being an enormous increase in demand for oysters due to boring GP lessons, NS and Weishan. At the same time, oysters being as rare and precious as they are, supply of oysters of equal quality as the original ones has fallen, since it’s simply impossible to make them as good. Hence, as supply falls, and demand increases greatly, there is a huge oyster shortage in Singapore.

2007 first saw the spike in the demand of oysters. This was largely due to boring General Paper lessons which led innocent little girls to turn to oysters for comfort and entertainment. When the value of oysters was discovered by such innocent little girls, they naturally wanted more oysters, and hence this caused an increase in the demand of oysters. Hence, this will lead to a shift in the demand curve to the right, as seen in Figure 1. As a result, at the same quantity of Q₀, the price of oysters has increased from P₀ to P₂, and this causes a shortage of Q₀Q₂ units of oyster. An upwards pressure is exerted on the original equilibrium price of P₀, and the equilibrium price increases to P₁ for the quantity transacted of Q₁. Hence, the price of oysters increases. However, as oysters are largely inelastic, an increase in the price of oysters means that there’ll only be a tiny decrease in the quantity of oysters demanded, which accounts for the shortage of oysters.

The increase in demand of oysters is further compounded by the Enlistment Act of Singapore made in 1965, which states that all Singaporean males are liable for national service at the age of 16. This thus generates further increase in demand for oysters, as oysters are now not only in demand on mainland Singapore, but also by the officers of Tekong. Considering that supply of oysters remains constant, this added demand only adds to the shortage of oysters, as oysters cannot be both in Tekong and mainland Singapore at the same time, especially since Tekong and Boon Lay are very very far apart. Similarly, this will cause a further shift of the demand curve to the right, and following all the mumbo jumbo of the previous paragraph, ultimately the price of oysters will increase yet again, but still the quantity of oysters demanded does not have a significant change.

At the same time, the increase in demand of oysters is also due to a decrease in demand for its substitute, the wheatgrass, more popularly known as Xiao Mai Cao (XMC). Recent developments has made it such that consumers of the XMC will also have to put up with very bad English, very annoying friends, and a tendency of the XMC to somehow look less cute as time goes by. As a result, this caused the price of the XMC to increase significantly as the inclusion of a best friend named Weishan is indeed a very heavy sacrifice. Thus, demand for XMC naturally falls, and as oysters are popular substitutes for XMC, the demand of oysters increases, and the demand curve shifts to the right yet again, yadda yadda. Again, see figure 1, and paragraph 2. (Sorry, lack of time.)

Last but not least, there is a fall in the supply of oysters, which makes the shortage worse. It is not easy to produce oysters which are nice, easygoing, smart, funny, cute and most importantly, thinks DOTA is a waste of time. Various attempts to produce more oysters of the same quality have been observed to have failed dramatically, as can be seen from the choir Oyster, the soccer Oyster (whom many have assured consumers to be complete jerks), the RV Oyster (who smokes and is a thorough Ah Beng) as well as a HCI Oyster (he’s from HCI. That should say it all.). Current attempts to produce oysters of the original wonderful quality will not be included in this discussion, as they’d be 19 years younger than consumers, and consumers are not paedophiles, no matter what their friends think. Hence, the supply curve shifts to the left, showing a fall in supply of good oysters, which is all the consumers would accept, from Q₁ to Q₃ at the same price of P₁ and hence, the shortage in oysters is aggravated.

In conclusion, oysters are good, and it is precisely because they are too good, the demand for oysters increase sharply as everyone wants them. At the same time, because they are too good, it is quite impossible to produce another batch of oysters of similar quality, which then causes supply to fall as consumers keep rejecting batch after batch of subsequent oysters. Thus there’s an oyster shortage in Singapore. ):

Nebulous Listerine

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Note to examiners: The candidate has refrained from providing too many graphical analysis because it honestly doesn’t apply to this question, and because she’s mindful of the examiners’ mental health and do not wish for them to choke up blood as they read nonsense that brings up traumatic memories of studying Economics. Please bear that in mind as you mark this essay. (: