CORRECT TEXT

CORRECT TEXT

The following appeared in a letter to the editor of a Batavia newspaper

"The department of agriculture in Batavia reports that the number of dairy farms throughout the country is now 25 percent greater than it was 10 years ago. Dunne this same time period, however, the price of milk at the local Excello Food Market has increased from SI.50 to over S3.00 per gallon. To prevent farmers from continuing to receive excessive profits on an apparently increased supply of milk, the Batavia government should begin to regulate retail milk prices Such regulation is necessary to ensure fair prices for consumers."

Write a response in which you discuss what questions would need to be answered in order to decide whether the recommendation is likely to have the predicted result Be sure to explain how the answers to these questions would help to evaluate the recommendation

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Answer: The letter slates a proposal to act as a solution for a given problem. It states that milk producers have increased the price of milk inspite of an increase in the supply, which enables them to receive excessive profits. The given suggestion is that government intervention might be a possible solution for addressing this issue. The proposal has given only a subjective view but has failed to prove how the government intervention might help them reach the required outcome through valid evidences.

Firstly. The letter has failed to address the population growth in the region of Batavia. in the event of considering the supply and demand in a place. It is crucial to take into consideration the population of the place the equal proportion of the growth in the number of dairy farms This might lead to many reasons and it could also dissolve the issue if the population outburst might have happened.

Another major issue that the letter has failed to address is the impact of the general rise in inflation. It is to be understood that in any economy it is imperative that there would be an increase in the price of products and services over a period of time There could even be an increase in the raw materials fodder, and medical expenses incurred by the dairy farm owners and milk manufacturers.

The third arbitrary assumption made by the letter would be that the profit are being solely taken by the manufacturers., the labor wages, cost of production and even the cost incurred during the delivery might have substantially increased. If various such factors are to be considered then the appropriate solution cannot be just the government intervention and there might be a need for a more comprehensive solution.

To conclude, the letter might appear to have addressed the issue but in reality it has failed to new it from the different dimension and ultimately fails to give a clear responsive view with valued evidences and supportive data.