Sky High Egg Prices Crack Open Market For Alternatives

Egg prices are rising due to rising prices for feed, packaging, and labor, and avian flu. “A lot of people are concerned with not being able to get eggs,” says chicken farmer Ron Kern. Instead of selling fresh eggs, Kern freeze dries them, charges $20 a dozen, and sells out immediately. —npr.org

Answer the following questions to check your understanding of the story.

According to the news clip, why are egg prices rising?

Egg prices are rising because ____________.

a) the supply of eggs is decreasing

b) the demand for eggs is increasing

c) the supply of eggs is decreasing more than the demand for eggs is decreasing

d) the supply of eggs is increasing

For consumers, what is the relationship between fresh eggs and freeze-dried eggs? Is the cross elasticity of demand for freeze-dried eggs with respect to the price of fresh eggs positive or negative?

Fresh eggs and freeze-dried eggs are ____________, and the cross elasticity of demand for freeze-dried eggs with respect to the price of fresh eggs is ____________.

a) complements; negative

b) substitutes; positive

c) substitutes; negative

d) complements; positive

Sky High Egg Prices Crack Open Market For Alternatives

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