Explain demand, supply and price of a product

-The income of a farmer/agribusiness depends on the quantity of products s/he offers for sale; but it depends even more on the price that those products sell for. It is therefore important for farmers/agribusinesses to understand how prices are determined.
Price is determined by supply and demand. The total desire or quantity for all consumers for a particular product is simply called the demand for that product. The total quantity of a product that farmers offer for sale is called the supply of that product.

-If the demand is high and the supply is low, a number of consumers will be willing to pay extra money to be able to buy the product. This is good for the sellers, because it means the price will be high.
If the supply is high and the demand is low, some sellers will be willing to sell their products for a lower price. This is bad for sellers, because the price will be low.

-The price of a product is determined by the interactions between consumer demand and producer supply.

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marto answered the question on March 14, 2019 at 05:57