What does the concept of demand and supply refer to in agriculture?

JAMB Agricultural Science 2023 9 views

What does the concept of demand and supply refer to in agriculture?

  1. The quantity of agricultural products produced and consumed.
  2. The interaction between buyers and sellers in agricultural markets. ✓
  3. The government’s role in regulating agricultural prices.
  4. The distribution of agricultural resources among different regions.

Explanation

Demand is how much consumers want to buy at various prices. Supply is how much producers offer at various prices. Together they determine market prices and quantities traded.

Agricultural markets are volatile because: supply depends on weather (unpredictable), demand for food is relatively stable, and products are perishable (cannot wait for better prices).

Understanding these forces helps farmers plan production, choose crops, and decide when to sell for maximum profit.

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