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	<title>rich text &#187; economics</title>
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		<title>Corn rationing</title>
		<link>http://www.lafferty.ca/2007/04/30/corn-rationing/</link>
		<comments>http://www.lafferty.ca/2007/04/30/corn-rationing/#comments</comments>
		<pubDate>Mon, 30 Apr 2007 19:16:15 +0000</pubDate>
		<dc:creator>Rich</dc:creator>
				<category><![CDATA[economics]]></category>
		<category><![CDATA[food]]></category>

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		<description><![CDATA[I went to grab a sandwich at the Loeb grocery store down the street from work at lunch today, and they had a sign up on the door which got me thinking about economics and the practical matters of selling produce. The sign said, roughly:
Due to unforeseen circumstances, we must limit corn purchases to 8 [...]]]></description>
			<content:encoded><![CDATA[<p>I went to grab a sandwich at the Loeb grocery store down the street from work at lunch today, and they had a sign up on the door which got me thinking about economics and the practical matters of selling produce. The sign said, roughly:</p>
<blockquote><p><strong>Due to unforeseen circumstances, we must limit corn purchases to 8 corns on the cob per family.</strong></p></blockquote>
<p>Things that have gone through my mind since then include:</p>
<ul>
<li>&#8220;Corns on the cob&#8221;?</li>
<li>Presumably the circumstances are a smaller-than-expected supply of corn.</li>
<li>8 is a large number. Do so many people usually buy more than 8 cobs at once that they had to limit it at 8?</li>
<li>Even if they&#8217;re short on corn, why limit people? Just sell out of corn and be happy you had no corn left.</li>
<li>Or, if people are buying so much corn, raise the price of corn already.</li>
<li>Maybe they advertised corn at a really low price, and don&#8217;t want people to come in from across town to get cheap corn, only for there to be no corn at all.</li>
<li>In fact, maybe corn is their loss leader, and they were losing too much, but they still want to do a bit of loss leading to get people to do the rest of their grocery shopping there.</li>
<li>Maybe they priced the corn so low as a loss leader that restaurants or even other grocery stores decided it was better to buy corn at retail than from their regular suppliers, and were buying dozens of cobs &#8212; which would mean that the circumstances aren&#8217;t a smaller-than-expected supply, but an unexpected (source of) demand.</li>
<li>April corn is a pretty crappy loss leader. Tough, tiny, insufficiently sweet kernels.</li>
</ul>
<p>And yes, indeed: <a href="http://www.1derwork.com/loebflyer1/">8 ears for $2</a>.</p>
<p><em>&#8220;Corns on the cob&#8221;?</em></p>
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