Comparing The Price of Gas To A Gallon Of Milk – Short Economics Essay
The Price of gas is no surprise, yet the reactions and comments make on believe that no one saw this coming. Supply-and-demand. The economy is always built around the people; generally people stick with trends, which
makes it easy for large corporations to use the public for their own moneymaking schemes. Hence, whenever one object is in on the new trend, companies with brand names are able to make the same product, but slap a designer label on it and sell it at higher prices.
Dairy producers are receiving some of the lowest prices for milk in twenty-five years. Even so, customers are being forced to pay as much as twenty-five percent more for milk in the lower forty-eight states, despite low prices paid to the dairy farmers.
According to the Department of Agriculture, the average price of milk per gallon in July was three dollars and fifty-two cents, while the national average was seen to be around two dollars and seventy-eight cents. But, government set farm prices per gallon of milk is around one dollar.
With Washington having more than six hundred dairy farms, it is one of the top milk-producers in the United States. Milk is Washington’s second most valuable commodity, second to only apples, but dairy industry representatives say the high retail prices help depress sales and contribute to dairy farm failures in the state.