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4 years ago

How Did Supply and Demand Effect farmers

History

1 answer:

Pie4 years ago

8 0

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.

<u>Explanation:</u>

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.

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