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by LorenPechtel
1214 days ago
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The percentages are irrelevant. The smaller the elasticity of demand the greater the price change needed to bring supply and demand back in line. Most egg use is commercial and not easily changed, they simply pay the higher price and use the same number of eggs. Thus we see a sharp reaction in the area where egg demand is more flexible--consumers. The high egg prices drive some consumers to eat something else, bringing down the demand. There isn't an oversupply of eggs--since egg prices went nuts I have seen many an empty shelf, never have I seen eggs on clearance. |
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