Saturday, February 1, 2014

Rising Egg Prices

Last year the price of a dozen eggs increase by over 40% in one month, and the reason is due to supply and demand.  What happened is that Mexico had an outbreak of bird flu, so to reduce the impact, poultry farmers had to cull their chickens.  This lead to a large decrease in the supply of eggs produced and thus using the demand and supply model would lead to an increase in market prices, which is exactly what happened.

No comments: