Question

How Did Supply and Demand Effect farmers

Answer 1

Supply and Demand Effects farmers in various ways:

• Demand Increase: Price increases, Quantity increases.
• Supply Increase: Price decreases, Quantity increases.
• Demand Decrease: Price decreases, Quantity decreases.
• Supply Decrease: Price increases, Quantity decreases.

Explanation:

Supply and demand, as well as market prices, will rise and fall until they achieve a balance, which is called market equilibrium. As a response to decline the sales, farmers will have to lower the prices until the demand for product increases.

If a farmer set a price which is too high, thus the demand will decrease. If the market price is high, the interest of producers for a certain product or service will increase.