Supply and demand is defined as the amount of a product on hand and the level of desire for people have to buy that productor consume it, at a certain point in time. Food, however, has a different type of supply and demand.
In September 2015 the, demand for eggs was at a record high while thebut supply was low. Now the supply forof eggs areis extremely high, but thebecause demand is low therefore we have seen a resulting drop in prices for eggs in the last two years. The reason for the 2015 price drop in 2015 was anthe avian influenza outbreak, that forced farmers to destroy millions of birds. and pricesPrices skyrocketed afterwards.
Businesses have reacted to the supply inthis increased availability of eggs by dropping thetheir prices. According to the Bureau of Labor Statistics:
Prices have plummeted 52 percent from athe record high $2.966 reached in September 2015.
WhichThis is great news for buyers, but since there wasowing to the health scare and major recall in 2015, people are stillconsumers remain skeptical when it comes to buying eggs. This creates a curve to the supply and demand rates. Since there is not a high demand for eggs is low because of this recall thethe recalls, supply will continue to rise which ultimately causes a decrease and pricesprompts further decreases in the market prices. Adolphus Baker says that “ high“High prices cure high prices and low prices cure low prices”. MeaningIn other words, that when the price of eggs arereaches an ultimate low price andpoint, people are willing to buy more eggs because of the lowattractive price, and when eggs are scarce and the demand for eggsis are high, businesses will charge more because of less Supplyrestricted supply. Ultimately this creates a curve in the supply and demand because low prices spike a demand for a product.