1) How much did egg prices increase from November 2021 to November 2022? How did this compareto the price of other "food at home?"2) What caused the economic shock that drastically raised egg prices?3) According to the author, what additional factors are contributing to the rising cost of eggs in the winterof 22-23? billion in December 2021, according to USDA data issued Dec. 20."It's a supply disruption, 'act of God' type stuff," Moscogiuri said. He called the situation "unprecedented.""It's kind of happenstance that inflation is going on [more broadly] during the same period," he added.Price pressures may be easingBird flu typically arrives during the spring migration and disappears by the summer, experts said. But thisyear was different; the virus reemerged in September.In October, the USDA revised its production forecast for table eggs downward for 2023 and the remainder of2022 following "September detections" of bird flu.That avian flu flare-up and its associated death toll for egg-laying hens - is running headlong into peakdemand. Consumers generally buy more eggs now for holiday baking, for example, experts said.-Consumer demand for eggs has also been buoyed by a pivot away from some higher-cost proteins amidbroader food inflation, the USDA suggested in an October outlook report.Egg prices jumped 2.3% just in the month of November, and by 10.1% in October. Elevated egg prices"could last into the first quarter of 2023," Lapp said.But price pressures appear to be easing, according to Moscogiuri. That's partly a seasonal effect, as demandnaturally lets up after the holidays. It's also due to record egg prices somewhat dampening demand, he said."The market has now topped and spot prices are becoming increasingly negotiable," Moscogiuri said. "As thespot price falls, the market will follow and we will likely see a 25%-30% correction from current all-time highs."This adjustment will likely take place over the next three weeks." Any additional, large outbreaks of bird flucould disrupt this trend, he added.00332 How did this compare "Here's why egg prices surged in 2022. Those elevated costs could last into the first quarter of 2023,expert says"by Greg lacurciCNBC, December 29th, 2022The surge in egg prices has stood out in a year when Americans saw their bills balloon across the grocerystore.Average egg prices jumped 49.1% in November compared with those a year earlier - the largest annualpercentage increase among all grocery items in that period, according to the consumer price index, abarometer of inflation.By comparison, the overarching "food at home" category was up 12%.The increase is even more acute when measured by the cost of a dozen large, Grade A eggs, which morethan doubled to $3.59 in November from $1.72 the year-earlier month, according to data from the FederalReserve Bank of St. Louis.Bird flu is largely to blame for rising egg pricesThose price dynamics are primarily due to the deadliest outbreak of bird flu in U.S. history, which has killedmillions of egg-laying hens this year, according to economists."A lot of things are up since 2020," Bill Lapp, president of Advanced Economic Solutions, a consulting firmspecializing in food economics, previously told CNBC. "But the recent spike is extraordinary in the shell-eggas well as egg-product markets."About 57.8 million birds have been affected by avian flu in 2022, according to U.S. Department of Agriculturedata as of Dec. 28. These figures include birds such as turkeys and ducks.Bird flu is relatively rare in the U.S. The last bout was in 2015, when 50.5 million birds - the previous record- were affected, according to the Centers for Disease Control and Prevention.The flu hadn't emerged in at least a decade or two prior to that, Lapp said. Here's why this matters: Avian fluis "highly contagious," the New Jersey Department of Agriculture said in October. It's also extremely lethal: Itkills 90% to 100% of chickens, often within 48 hours, according to the CDC.Farmers generally must kill their remaining birds - not by choice but due to federal rules meant to preventspread, Brian Moscogiuri, a global trade strategist at Eggs Unlimited, an egg supplier based in Irvine,California, previously told CNBC.About 40 million egg-laying hens- "layers," in industry shorthand - have died this year due to avian flu,Moscogiuri said. There were 375 million total layers in the U.S. as of Dec. 1, which is down 5% from lastyear, according to the USDA.Egg quantity has declined in lockstep. About 8.9 billion eggs were produced in November, down from 9.7

In 2022, egg prices surged due to the deadliest outbreak of bird flu in U.S. history, which caused…

Answered: 1) How much did egg prices increase…

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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