Thread: Food Crisis
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Unread 30 Jun 2008, 15:05   #8
Dead_Meat
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Re: Food Crisis

The other way of looking at this (as I heard on the radio the other day) is that the consumption of luxury foods may actually increase.

Luxury foods will be largely unaffected by increases in the cost of production, since they are by their nature not tied to basic commodities.

So, lets say a luxury item is twice as expensive as a basic one. If the basic one increases by a 50%, then the luxury item is now only 30% more expensive and appears to be almost a bargain, so it's quite possible more people will buy it as it appears to be more affordable.
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