Monday, June 08, 2015

An old lesson....

A shortage is when there is an insufficient amount to satisfy demand at the existing price.

I have lived during shortages.  I knew shortages.  Shortages are something I learned to deal with.  Egg supply shock, you're no shortage.  

Unless we make it one:


Anonymous said...

"But it's becoming increasingly clear that it isn't merely those who produce eggs that will suffer. Those who eat them will pay a price, too."

I glad the author is here to tell us these things. As an egg eater, I never realized that fewer eggs would somehow affect me.

Dirty Davey said...

The grocery store is making a choice.

It's true that they could raise prices to the point where there was no need to "ration" the eggs. And it's likely that in the short run raising prices would increase prices.

But maybe the store is thinking in the long run. The rationing is likely to produce more satisfied customers and fewer unhappy customers among its most frequent and reliable shoppers. And since most grocery stores depend on regular customers for most of their business, keeping more of these customers happy could in the long run be more profitable than taking profits now from commercial entities whose normal egg supply has dried up.

Dirty Davey said...

editing error... "in the short run raising prices would increase profits".