As with anything, supply in demand has pushed the cost of the iodine pill into an astronomical price bracket with online auctions. This is not just in Japan, the US, Canada, and many other countries are experiencing this today. The run for this pill is on, with reports from countries no where near Japan seeing a rush from its citizens to get this product. Supplies are low and getting lower, with many suppliers already reporting they have exhausted their inventory.
The Internet has played an amazing part in putting people in touch with one another after Japan’s earthquake and tsunami, but now it is playing a part in a darker side of the aftermath of this catastrophe. Iodine pills online are up for bid and going for as much as $540 a packet. The packet contains 14 pills, and its usual cost is about $10 a packet, according to CNN News this morning.
Story here. David Tufte notes
That is a 5,300% increase in the space of 5 days.
Annualized, that is 3 x 10126%.
Yes, that’s scientific notation.
Here’s the rate written out: 2, 915, 710, 944, 820, 310, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000, 000%.
Tyler Cowen quips
p.s. Maybe QEII is at fault!
I agree with Tyler. I think we can find QEII not guilty in this case. It's purely a rightward shift of demand caused by the damage Japan's recent earthquake did to some nuclear plants. But is it price gouging?
its always QE's fault
Posted by: intrinsic | March 18, 2011 at 05:04 AM