Inflation is a raging wildfire. During 2021, the Consumer Price Index (CPI) rose 7 percent, the largest increase in almost 40 years. In this regard, grocery shoppers have no doubt noticed that the price of beef jumped 18.6 percent during the year. As a result of high beef prices, President Biden threatened the four largest meat processors with antitrust action if they do not restrain prices. Biden claims the processors are gouging consumers. But his comments displayed a lack of understanding of basic economics — specifically, supply and demand. What is happening to beef prices is the interaction of supply...

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