Conclusion about illustration graphically and specifying the assumptions upon which your reason is based, describe briefly the effects on the price and output of fresh maize of adverse weather conditions. ii. The effects on the price and output of oranges of an increase in consumers income.
Explain the difference between a change in supply and a change in quantity supply. Write only a conclusion about the above stated
Based on the graphical illustration and assuming all other factors remain constant, adverse weather conditions can greatly impact the price and output of fresh maize. With adverse weather conditions, such as drought or heavy rainfall, the supply of fresh maize decreases. This leads to a decrease in the quantity supplied and an increase in the price of fresh maize.
On the other hand, an increase in consumers' income can have a positive effect on the price and output of oranges. As consumers have more disposable income, they are likely to increase their demand for oranges. This increase in demand leads to an increase in both the quantity supplied and the price of oranges.
The difference between a change in supply and a change in quantity supplied is as follows:
1. Change in supply: This refers to a shift in the entire supply curve. It occurs when factors like technology, input prices, government regulations, or weather conditions affect the overall supply of a product. A change in supply results in a new equilibrium point in terms of price and quantity.
2. Change in quantity supplied: This refers to a movement along the existing supply curve. It occurs when the price of a product changes, leading to a change in the quantity producers are willing to supply. However, factors other than price, such as input costs or technology, remain constant. A change in quantity supplied does not shift the supply curve.
In conclusion, adverse weather conditions can lead to a decrease in the supply and output of fresh maize, resulting in an increase in its price. Conversely, an increase in consumers' income can boost the demand for oranges, leading to an increase in their price and output. Understanding the difference between a change in supply and a change in quantity supplied is crucial in analyzing the factors influencing market dynamics.