[Adirondackian]

“The egg market is all controlled by supply and demand. The government sends out a price every week and we follow it,” Hilliker said.

Its a contradiction. If the government sets a price, then its not a function of supply and demand. The whole statement sounds like Orwellian double-talk.

 

[Adirondackian]

He means exactly what he said only he didn't say it well. It's the supply and demand market (the producers) that sets the prices, not the government. The USDA keeps track of the current market prices and sends a list every week to the producers to let them know what is happening. The USDA doesn't set the prices, it only shows them what the prices are in the market. Then it's up to the producers to set their prices accordingly, as the producers choose to do. It's the same system in all countries. Maybe this will explain it better for you:

Chapter 5 - Pricing and sales policy.

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Well not really because supply and demand fluctuate from location to location. So if the USDA is sending out "national average prices" to local producers they are influencing the pricing and, therefore, it is no longer a function of supply and demand. No agency can 'set a price' in a supply-demand dynamic.

There is no "national market", the attempt to consolidate prices into some kind of national average, and sending those prices out as a model for pricing is price manipulation. Producers dont "set" prices in a true free market economy, its a bargaining process between supply [ producers ] and demand [ consumers ]. And it varies from place to place, moment to moment. Any attempt to short circuit that process contradicts the whole point of supply and demand.