How Summer Impacts our Economy
Carla Salisbury
Mr. Reuter
B1
How summer impacts our economy
Carla SalisburyIn the summer the demand for certain products is higher and summer gives the opportunity to all companies to raise revenue on products. People’s spending drastically during the summer. The prices for some products goes up in the summer. Official data on sales of goods show that they tend to be based on annual spending, but the demand for some products tends to be seasonal.
In summer the demand for cold drinks and ice cream goes up. Companies that produce things like ice cream sell more of their products during the second quarter of the year, which is summer. A in the UK based ice cream producer reports that 68% of its revenue is earned during the second third of the year. But other economic factors affect demand too. The change of temperature of 1% increases the demand of around 2.4%.
In summer the demand for cold drinks and ice cream goes up. Companies that produce things like ice cream sell more of their products during the second quarter of the year, which is summer. A in the UK based ice cream producer reports that 68% of its revenue is earned during the second third of the year. But other economic factors affect demand too. The change of temperature of 1% increases the demand of around 2.4%.
The demand for meat does not go up in general, but instead the demand for different kinds of meat changes seasonally. In the summer the demand for sirloin is higher than usual, but the demand for roasting joints is low at that time.
The price for gasoline tends to rise during the summer, since people go on more road trips. The demand and price for gasoline goes up since the gas suppliers only produce a fixed amount of gas. It is not uncommon that the demand for gas is higher during hot summers.
Hot summers can also result higher taxes. In the summer of 2015 it was very and very little rain, which led to many forest fires. In an average summer the government spends about $100 million fighting forest fires, even though the annual budgeted amount is at about $63 million. These costs will result higher taxes. The climate change also results lake temperatures to rise which can have devastating results for fish and the things connected to it. It is also expected that there will be more floodings and violent storms, which will damage many properties.
Overall summer has an big impact on our economy, as well as good and bad. Many companies have a higher revenue, especially if there products are for the summer season. But it is important to pay attention and do something about the climate change since it damages the earth and also our economy.
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