> However, food economists are skeptical an inquiry would uncover wrongdoing.
> “I don’t think we’ve seen anything that makes us think that there’s something there other than normal economics happening right now,” said Amy Smith, vice president at Advanced Economic Solutions.
When profits are suddenly up 700% this claim no longer holds water.
> High egg prices send profits at largest US producer soaring more than 700%
https://www.cnn.com/2023/03/29/business/egg-profits-cal-main...
In the short term, I expect profit margins to increase for goods experiencing supply / demand shocks due to market participants trying to figure out which way supply and demand curves are moving, and in shortage scenarios, buyers willing to pay more than necessary to secure the goods.
Note that the buyers have options to consume other foods for their nutritional needs.
The high prices work to incentivize competitors to enter the market and increase the supply. If only the government would stop letting competitors merge together...
No, the alternative to price gouging is to maintain a normal profit margin since your flocks didn't have to be culled and your costs have not gone up.
If anything, the flocks that had to be culled would have caused a sudden chicken feed surplus and their feed cost should have fallen.
If there are fewer eggs, then there are fewer eggs. The only thing left to discuss is who has the right to obtain them, and who will not. Usually, society accepts that people with more money get more access to things than people with less money.
Colluding to price gouge consumers when costs have not increased is illegal behavior.