She sells them at $2/chicken to Mary's Market and the profit is her annual income. She raises and sells about 50,000 chickens a year thus she makes $50,000 a year before taxes.
Mary's Market then sells them to you for $4/chicken.
That is how the free market system works.
The government may send the occasional inspector to Cindy's Chicken Coop and they will visit Mary's Market as well.
But what if the government institutes price controls arguing: chickens are essential to the health and well being of our citizens and the people must be protected from the profit taking Cindy and price-gouging Mary.
Therefore, Mary's Market must sell chickens at $2 and if the inspector finds the prices higher Mary will be fined or imprisoned or both.
Mary goes to Cindy and says, can you sell me your chickens for $1.50 a piece?
Mary also starts looking into selling other kinds of products that aren't pr…