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Not at the price points they're at. If milk halved in price, would milk consumption significantly rise? Not at all. So yes, milk consumption is price elastic,
by candiodari 4y ago
Not at the price points they're at. If milk halved in price, would milk consumption significantly rise? Not at all.
So yes, milk consumption is price elastic, but not at these prices. They're too low.
Same goes for eggs, bread, ...
- rcme 4y agoI could definitely see milk consumption increasing if prices were lower. Tons of products use cheap fats that could use butter instead if it were cheaper. If milk products were cheap enough, you could use it as animal feed. If it was really cheap you could burn it for energy. Also worth noting is that the dairy industry is subsidized by the government, so the amount of milk being consumed is already higher than you would expect if the price was set at the market price. For eggs, similar things could occur. Soy lecithin is a common emulsifier, but could be replaced by egg lecithin if eggs were cheaper than soy.