Theory question 109
Marketing of Agricultural ProduceState the law of demand and six basic assumptions as related to agricultural products. Illustrate your answer with the aid of a demand schedule and a demand curve.
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Law of demand: other things being equal, the higher the price of a commodity, the lower the quantity demanded, and the lower the price, the higher the quantity demanded
Assumptions (any six): consumers' income stays the same; tastes and preferences unchanged; prices of substitutes/complements unchanged; population unchanged; no expectation of future price change; commodity is a normal good; no change in government policy (taxes); weather/season constant
Demand schedule: table of prices against quantities, e.g. price ₦50 – 10 kg, ₦40 – 20 kg, ₦30 – 30 kg, ₦20 – 40 kg
Demand curve: plotted from the schedule with price on the vertical axis and quantity on the horizontal; slopes downward from left to right
Include a table and a downward-sloping curve drawn from it.