Keeping in mind the economics of Dybvik’s article, consider the fairness of the following:
- While ethanol is considered a substitute for gasoline, not all consumers will choose to use ethanol. However, all consumers will ultimately face higher prices for corn-based food products because “the trend has been to divert some corn production to ethanol.”
- Transportation companies are adding fuel charges to invoices, driving up the prices of goods sold by retailers who pay these fuel charges.
- A justification for charging higher prices for food is that higher prices force consumers to eat healthier and buy locally.
Posted by Prof. C-S