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To: fanfan

Protesting low retail prices? I'm sorry, but the law of supply & demand will not take a holiday because organized labor throws a temper tantrum.


12 posted on 10/16/2006 12:09:13 PM PDT by Boogieman
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To: Boogieman
Protesting low retail prices? I'm sorry, but the law of supply & demand will not take a holiday because organized labor throws a temper tantrum.

Not organized labor, the farmers themselves. And the law of supply and demand most assuredly WILL give them what they want.

They want prices to go up. In a capitalist world, there are two ways to achieve this. 1) Increase Demand. 2) Reduce Supply. The first option won't work because chocolate output currently meets demand, and it's hard to get people to love chocolate more than they already do. So they went the second route...slash supplies to drive prices up. So long as they can keep their increased costs BELOW the cost of producing them in a neighboring country, they can increase their income by manipulating output.

That's what the free market is all about. If I have an in demand product and want to make more money from it, there's nothing wrong with cutting production in half and tripling my price to capitalize on it.
115 posted on 10/16/2006 4:48:09 PM PDT by Arthalion
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