Tuesday, August 13, 2013
THE TAPIOCA PARADOX
Those who are familiar with the jargon of economics will be familiar with the basic concepts of normal good and inferior good. But for the non- economics readers let me elaborate on the two terms. Normal goods are those whose demand increases with an increase in income. Inferior goods on the other hand are those goods whose demand falls with an increase in income.
Now the question is does a product remain an inferior good across time or is it relative? There is no universal answer for this question because this will depend on the good. Here I consider the case of tapioca. (Apology to non- Keralites as they will not be very familiar with this delicacy of Malayalis).
Tapioca which is considered as staple diet of Kerala, of course next to rice, has made three square meals a day for the people of Kerala. It was the common man’s (poor man’s) food. The popularity of tapioca was attached to the high calorie levels it offered which equipped people work in farms and does other manual labour. Also it could be grown conveniently grown on a small scale in a small plot of land with minimal capital.
With the increase in income people gradually shifted from tapioca to rice. The dishes they consumed diversified. Today Kerala has attained better standards of living. The poverty in absolute terms is coming down in Kerala. The per capita income in Kerala is also tracing a positive trajectory. Is this indicative of the demise of tapioca?
Definitely the answer is in the negative. The tapioca has surely made a comeback as a special invitee in the cuisine of Malayalis. No get together of Malayalis go complete without tapioca and fish curry, no hotel menu in Kerala is complete without this combo delicacy. In fact tapioca has become a major ingredient of five star menus. Thus, tapioca has transformed itself from an inferior good to a normal good or a luxury item at times. Kudos to tapioca.
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