Worse, the price would have to be lowered to bring up sales, which could put the other peach farmers into bankruptcy as well.
Worse, the price would have to be lowered to bring up sales, which could put the other peach farmers into bankruptcy as well.
If your warehouse is full of peaches nobody wants, you might be forced to sell them for negative dollars to take them away. It's either that, or you pay to have the waste management company dispose of them. So the price effectively goes negative from trying too hard to force something to happen.
We run into something similar every year here in India. One recent example [1] This year it is the Middle East crisis. Last year it was probably a glut because there was shortage the year previously.
[1] https://www.ndtv.com/india-news/video-offered-rs-4-per-kg-ma...
As for artificially high, when was the last time you heard someone complain about those awful, expensive canned peaches?