Here in Australia, "free range" hens must be kept at no more that 10,000 head/hectare (or 1 sqm of land per hen). This is massively better than battery hens, which are kept at as low as... 0.03 sqm of cage/hen. The animal welfare benefits are huge, battery hens have a truly horrible existence, to the point where I believe that it is immoral to farm them in this way.
But some producers are advertising lower stocking densities, some 6 sqm per hen and others even 10 sqm. They are charging a small premium for their eggs, and some people pay it, because they like the idea of animals being treated well.
So yes, many people are prepared to pay a bit extra for ethical treatment of animals. Even people (if that where the original post was pointing at).