Low Turkey Prices During the Thanksgiving Season
With Black Friday coming up, many Americans are fixated on hunting for the best deals. Yet flying under the radar is the surprisingly low price of turkeys during the Thanksgiving season. While the price of turkeys remains fairly steady throughout the year, there is an annual decline starting shortly before Thanksgiving and lasting until Christmas.
Leading up to Thanksgiving, many stores advertise deals on turkeys and each store attempts to outdo one another with lower prices. As the industry for turkeys is an example of monopolistic competition, due to differentiation in types of turkeys offered and the large number of suppliers, there is a lot of competition between the suppliers. Most stores choose to offer low prices as they are focused more on maximizing their profit instead of the marginal revenue for each turkey. By lowering the cost of their turkeys, the poultry acts as a loss leader, or a product sold cheaper to attract more customers. If people come into the store to get a cheaper turkey, they are likely to buy other Thanksgiving necessities, such as stuffing, pie or cranberry sauce. Thus, the overall profit increases. Additionally, the price is able to be lowered as not only demand, but also supply increases. Throughout the year, wholesale turkey suppliers stock up on turkey and freeze it so they can sell a large amount to retailers and stores during the holidays. As there is a large amount of turkeys stored away, the supply is elastic. The amount of turkeys available also increases as many stores or businesses that do not usually offer turkey sell it for a limited time, thus increasing the number of suppliers.
Thanksgiving in itself is something to be excited for, and the low prices of turkey are just another thing about the holiday to gobble up. Thanks to increasing supply and demand, as well as companies using turkey as a loss leader, Americans can enjoy turkey for a truly great price.
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