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Significantly increasing production capacity would take time, and companies would only do it if they thought the shortage would be long-term. There's no use mak
by DiogenesKynikos 4y ago
Significantly increasing production capacity would take time, and companies would only do it if they thought the shortage would be long-term. There's no use making a long-term investment in response to a temporary shortage.
In the short term, the market would "address" the problem by increasing prices. Poorer parents would respond by buying less infant formula. Better-off parents would accept the price hike. Infants in poor families would suffer.
This is the sort of thing you'd expect a modern society to prevent. Just letting the market solve the issue by letting prices spike - and consequently risking malnourishment in infants - is a bad idea.