What happens to the price of a agricultural product when demand exceeds supply?

Explanation

When demand exceeds supply, prices rise. Buyers compete for limited products, willing to pay more. This is basic market economics – scarcity increases value.

In agriculture: during dry season when vegetables are scarce, prices increase. After harvest when supply is abundant, prices fall. Farmers time sales accordingly.

This price mechanism signals farmers to produce more of scarce products and less of abundant ones, helping balance supply with demand over time.