That shows a poor understanding of price elasticity and supply...

That shows a poor understanding of price elasticity and supply /demand. Shortage of supply at the same time as increasing demand or flat demand means prices increase to the point of elasticity. If nobody can actually fill the supply gap and demand stays the same....price goes up to the point that it become inelastic.. in other words the price people are no longer prepared to pay. That occurs until new supply enters and the world rebalances. Who shops around for vets based on price? who won't pay more to get there pet attended to at a vet.. GXL have a lot of control in setting price in situations where price needs to go up because of cost.