Actually I think this will affect the cost of eggs only in CA.
Most producers will not comply and will maintain lucrative contracts elsewhere.
Then there will be some who comply from out of state and they'll have a lucrative market within CA.
And the going rate for eggs will be $2.50/doz everywhere but CA where it will be $4.00.
Or thereabouts.
I think you are correct. The markets will develop to meet the new paradigm.
But: When Californians start bitching about their four-buck eggs, California will start looking for ways to force the rest of the country to pay. Ask Amazon about that, they’ll be happy to tell you about their experience with the CA machine.