4 ms·

The alternative to price gouging is empty shelves with no option to buy at any price. The high prices work to incentivize competitors to enter the market and i

• GeekyBear 4y ago
  > The alternative to price gouging is empty shelves with no option to buy at any price. 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.
  • lotsofpulp 4y ago
    Cost of goods sold only sets a minimum price. 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.
    • GeekyBear 4y ago
      > Cost of goods sold only sets a minimum price. Colluding to price gouge consumers when costs have not increased is illegal behavior.
      • lotsofpulp 4y ago
        Who is colluding? And price increases in the US are not restricted to only when cost of goods sold increases. Any seller can change the price they want to sell at at any time, unless there is an emergency such as natural disaster where price gouging laws come into effect.
• fnordpiglet 4y ago
  The issue being highlighted is that they suspect suppliers are colluding the drive prices higher. In a collusive monopoly the number of competitors artificially decreases.