Avian Flu on the Supply and Demand of Eggs

Article title: Bird Flu Sends Egg Prices Up, but Slowing Demand Prevents Shortages

Article source and date: New York Times (June 15, 2015)

Economic topic (and chapter): Supply and Demand (Chapter 3)

What is the article about?: An outbreak of Avian flu has sent egg supply dwindling and prices prices surging throughout America. Some 47 million chickens have been effected along with millions of turkeys. Wholesale prices for eggs have reached its highest in years. Forecast are predicting that it may reach as high as $2.49 for a dozen. This is more than a dollar’s difference since the average price last year.  The USDA themselves have predicted that production will be down a whopping 341 million dozen. The recent surge in prices has gotten big name corporations scrambling for alternatives.The outcome of the flu have been far reaching with it effecting major fast food industries such as McDonald’s and Taco Bell. Local diners and restaurants have also been affected with most places searching for egg alternatives. Some other grocery stores have gone as far as limiting the amount of eggs customers can buy.

What are the economics of the article?  How does a recent topic covered in the course explain the subject matter of the article?:

In class we learned about supply and demand. In this scenario we see the supply declining and the prices of the eggs therefore rising. The production of eggs is declining due to the Avian flu but the demand for eggs is the same. A decrease in supply with a constant demand will increase the equilibrium price and decrease the equilibrium quantity.

How does your graph show the economic concepts seen in the article?

The graph shows the shift in supply after the outbreak of Avian flu.  Since the demand stays the same, the new intersection of the quantity of eggs and demand yields a higher price.  


Strom, Stephanie (2015, June 15) Bird Flu Sends Egg Prices Up, but Slowing Demand Prevents Shortages. New York Times. Retrieved from



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