How does this make any sense? You can't just say "basic economics" and walk away.
There is a shortage. If prices increase to a "reasonable" level, profits remain the same even if prices increase. There are less eggs to be sold, so you increase prices to compensate for lower overall sales / lower supply. If you increase profits beyond a pre-shortage level, that means you are jacking up prices well beyond what they would actually need to be to "weather the storm" of bird flu.
It's because of corporate greed and oligopolistic practices.
Fluffheady t1_j53buyn wrote
Reply to comment by eljefino in What is going on with egg prices? by [deleted]
How does this make any sense? You can't just say "basic economics" and walk away.
There is a shortage. If prices increase to a "reasonable" level, profits remain the same even if prices increase. There are less eggs to be sold, so you increase prices to compensate for lower overall sales / lower supply. If you increase profits beyond a pre-shortage level, that means you are jacking up prices well beyond what they would actually need to be to "weather the storm" of bird flu.
It's because of corporate greed and oligopolistic practices.