It is not surprising that egg prices are rapid. In October 2024, Umass -Amherst economist isabella Weber insisted that price control was needed to control the price, and that control would not have a negative impact we commonly predict, such as lack of control and dead weight loss. here. One of the points I raised is:
In addition, since the price is artificially low, the supply curve prevents elasticity and/or growth, so the cost of the price limit lasts longer.
Four months later, we actually see this. The high price of eggs is Backyard Or even Chicken rental. This is an example of the second law of demand.Universal economy Armen Alchian and William Allen, P 116). In other words, the higher the price, the more relatively the higher the price, the more people find or develop alternatives to make the demand curve more flexible. The same is true for supply. The longer the price, the more relatively the higher the price, the more creative people are supplied to the market. When the egg was $ 12, having a backyard of the backyard was almost meaningless. However, the price of eggs pushes two digits (a large egg of $ 12 in my local store is sold for $ 9), and now the relative price of the back courtyard Koup is reduced and people are switching to the alternative. The demand for eggs is further elastic. The same is true of the supply when people with Coups sell eggs or give eggs to their neighbors.
If price management is prepared, this process will be much harder. The market is moving to the solution. Price management will slow this process. Weber’s suggestions would have just turned the invisible cost rather than ending the tribe and controlling inflation.
Update: Since I originally wrote this work, the price of eggs has fallen. The price of 12 eggs in my local store is now $ 5.79 as of April 3. But because the drop supports the point I make here, I won’t change the original post.
