Impact of Supply and Demand on Agricultural Prices

The video explains how various factors influence the prices of agricultural products, focusing on maize. It illustrates the balance between supply and demand, showing how prices rise when demand exceeds supply and fall when supply exceeds demand. Weather conditions, investment in farming, and changes in consumer demand, such as the introduction of new uses for maize or substitution with other crops, also impact prices. Farmers are advised to stay informed about market trends to make better decisions on selling or storing their crops.

What happens to maize prices when supply and demand are balanced?

• Prices increase significantly

• There is no effect on prices

• Prices decrease

• Prices remain stable at 100 units per bag

What leads to an increase in maize prices to 125 units per bag?

• Increased supply

• Decreased demand

• Increased demand with constant supply

• Decreased supply without a change in demand

How does oversupply affect maize prices?

• Prices increase to 200 units per bag

• Prices decrease to 75 units per bag

• Prices remain unchanged

• Prices increase to 150 units per bag

What external factor can cause maize prices to increase to 200 units per bag?

• A decrease in consumer demand

• Poor harvest due to lack of rain

• An increase in maize farming investment

• Construction of a new maize factory

How does the introduction of a maize factory affect maize prices?

• Stabilize prices across countries

• Decrease to 75 units per bag

• No significant change

• Increase to 150 units per bag

What is the effect of importing cheap maize on local prices?

• Prices increase due to high demand

• Prices stabilize due to balanced supply and demand

• There is no effect on prices

• Prices decrease due to oversupply

How does the substitution of maize with rice affect maize demand?

• Increases demand for maize

• Increases the price of maize

• Decreases demand for maize

• Has no effect on maize demand

What should farmers be aware of to make informed decisions about their crops?

• Only the advice of other farmers

• Factors affecting supply and demand of their crops

• Only the prices of their crops

• Only the current weather conditions

Who can provide farmers with information about market trends?

• Only international traders

• Market analysts and marketing advisers

• Only their local farming community

• Only government agencies

What is a crucial action for farmers to take regarding their crops?

• Rely solely on historical data

• Seek information about the market status

• Focus solely on increasing production

• Ignore market trends