Theory question 103
Theory of SupplySection B: answer three questions only from this section.
(a) What is meant by the supply of a commodity? (b) What are the probable factors that can bring about changes in the supply of beans?
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(a) Supply is the quantity of a commodity that producers are willing and able to offer for sale at a given price over a given period of time
(b) Changes in the cost of production (labour, fertiliser, seeds, transport)
Weather and climatic conditions (rainfall, drought)
Pests and diseases
Changes in technology (improved seeds, mechanisation, storage)
Number of farmers/producers of beans
Prices of other crops competing for the same land (e.g. maize, rice)
Government policy: subsidies, taxes, credit to farmers
Expected future prices; season of harvest
Natural disasters, communal conflicts, transport problems
Distinguish supply from total production, then explain at least five factors.