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- 声望
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ARGUMENT 10
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. During this same time period, however, the price of milk at the local Excello Food Market has increased from $1.50 to over
$3.00 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 both lower prices and an adequate supply
of milk for consumers."
第一次写Argument,超时了10分钟,泪。。。求拍,有拍必回~~
The author provides a suggestion for the government to regulate retail milk price in order to prevent farmers from receiving excessive profits. The author comes to this conclusion on the facts that the number of dairy farms increases 25 percent while the price of milk at the local Excello Food Market increases 100 percent during the past 10 years. However, close scrutiny of the facts reaveals that it accomplishes little toward supporting the author's suggestion, as discussed below.
First of all, the author wrongly concludes that the increase in the number of diary farms is equivalent to the increase in milk supply. During the 10 years, if the supply of milk from single cow went down, or the number of cows in each diary farm decreased, or more milk was used to make other production, the supply of milk would decline rather than increase. Without clarifying these possible situations, we can not simply see the increase in diary farms as an increase in milk supply.
Secondly, when stating the changes in the number of diary farms and in the milk price, the author uses different scopes. The 25 percent increase in diary farms was coming from the whole country, while the rise in the milk price was in the local Excello Food Market. We can not assume the possibility that the milk price in other regions is also on a rise.
Thirdly, a 100 percent increase of milk price does not necessarily mean that the farmers gain excessive profit. Other products' price may also have a 100 percent rise or even more. If other prices are three times as 10 years ago, the farmers actually suffer losses instead of gain excessive profit.
Finally, the increase of milk price may result from a national wide inflation, or from a rising cost of raising cows, or from the improvement of milk quality. When these cases are not excluded, it is unfair to say that the rise is price equals the rise in profit.
Finally, the author’s suggestion that government should regulate milk price to ensure both lower prices and an adequate supply of milk for consumers, break the basic law of economics, that is, the law of demand and supply. Intuitively, supply would go down if the price goes down, for the sellers gain less than before. Also, if the milk price declines, some farmers will find it unprofitable to raise cows and sell milk. Thus, an adequate supply of milk for consumers can not be guaranteed. Therefore, simply regulate retail milk price without subsidizing farmers will cause a decrease in milk supply.
All in all, if the author does not offer further evidence to prove that the milk supply actually increases, that local Excello Food Market is representative, that the prices of other products do not have a 100 percent rise, and that the price increase means profit increase, it is not convincing to conclude that the farmers gain excessive profits. Meanwhile, since the author's suggestion break the law of demand and supply, it is not an appropriate suggestion to regulate milk price to ensure both lower prices and an sufficient supply of milk.
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