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

JAMB Agricultural Science 2023 👁 59 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 quantity consumers want at various prices. Supply is quantity producers offer at various prices. Their interaction determines market prices and quantities.

Understanding these forces helps farmers: choose what to produce, plan timing of sales, and anticipate price movements.

Perishability makes agricultural markets different from others – farmers cannot always wait for better prices.

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