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A 200-word economic essay with the theme of recent economy and finance is required, and 200 words of too abstruse economic terms are not needed.
Taking pork price fluctuation as an example, we can see the shadow of many economic laws. First of all, why do pork prices fluctuate? Because under the condition of market economy, the price is determined by the value, which is certain, but the factors that affect the price fluctuation are determined by the competition between buyers and sellers. With the rising price of pork, it is profitable to raise pigs, so many retail investors have joined the pig industry, and the output and supply of pigs have increased. The increase of supply leads to the change of the position of buyers and sellers in market competition, and the seller is at a disadvantage and the price drops. However, this price fluctuation is temporary and will return to normal relatively quickly under the adjustment of the market. This reflects a basic law of economics, and prices fluctuate around value. It's just the basic law of economics, that is to say, this kind of fluctuation is normal, not something earth-shattering. But if the government intervenes in supervision, problems will arise. Although the government recognizes that the market is the most effective force in allocating resources, it is afraid of price fluctuation and always wants to control the price within a certain range, so various intervention measures, such as subsidies and insurance, have emerged. This actually affects the self-regulation of the market, which not only can't stabilize the price, but also may confuse the price. The main performance is to turn a relatively peaceful price fluctuation into a huge price fluctuation, but it hurts the market.