Kevin Willardsen, an assistant professor of economics in the Raj Soin College of Business, was interviewed by Dayton 24/7 Now about rising grocery prices. “People’s preferences are changing and the initial structure of production was geared towards preferences pre-COVID,” he said.
Willardsen said not only is production slow because plants have been shut down but people are changing what they’re buying at this time and companies are reluctant to give in.
“If I start retooling what I make in order to adjust to that and a vaccine comes out, not only have I wasted money, I’m now less competitive than I was before,” he said.
Willardsen added pricing will likely depend on how long the crisis lasts and how people react after.
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