The Great Lid Shortage of 2020

canning lid shortage
Comments (2)
  1. Kaitlin Johnson says:

    Why is supply inelastic for this specific industry?

    1. Hi Kaitlin! From what I could discover, there is currently supply inelasticity in the short term because they did not have sufficient land, labor, and/or capital to expand production and respond to potential price increases and more demand. Sadly, I do not precisely know the lid making inputs that would lead to inelasticity. However, I did find better evidence from 1975. Then, the NY Times said that factory output reflected 24 hour shifts and still, rural American had shortages. For now, I was a bit concerned. Yes, reputable media reported shortages (that supply inelasticity exacerbated) but I did find some supply on Amazon–if it was real. Returning to your question, it would be great to know exactly what put a lid on production.

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