Economics In Agricultural Free Essay

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Economics In Agricultural

The agricultural sector is important as it provides the basic food supply therefore an adequate amount is needed to prevent the buying of food supplies from other countries and also to have enough supply in case of a war the country must have its own food supply. Basic foods are inelastic therefore a low response in demand when there is a change in price. This is because basic human being only needs so much of basic food and will buy the same quantity of a product, no matter what the price is. This results in the production of basic foods not being a very profitable business. A fall in price could result in an overall low total revenue, which could lead to farmers leaving the agricultural sector in search for a more profitable job. This wil

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