25 April, 2008
Why Isn't Meat More Expensive?
The BBC has some facts and figures on the cost of food. Obviously, the price of food soared during 2007. But take a look at the change in prices by food type. Meat and sugar haven't changed at all? Sugar doesn't change because it is highly subsidized and doesn't remotely approximate a competitive market. But how can we explain the steady cost of meat while inputs are rising so dramatically--the food crisis has to have produced a supply shock. Is demand for meat perfectly elastic? I'm baffled?
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