Demand and Supply

S1 Price Question 1 Supply press out of disposition The state of nature includes every innate(p) force that will charm production such as weather and natural disasters. This promoter usually affects the agriculture orbit (Parkin 2010, p. 66). out-of-pocket to La Nina result which is a natural disaster, in that respect were fertilizer cuts and poke shortage. This will ca put on supply raise to shift to the left. Number of suppliers The larger the number of firms supplying a good, the larger the supply of a good and sin versa (Vengedasalam, Madhavan & Kamaruddin 2008, p. 47). As stated in the article, only Malaysia and Indonesia are the main preserve veget fitting oil exporter to the whole world. This means that the world swan greatly on these two countries. So, the number of suppliers is very few and in brief it will non be able to cater for the gain global demand. Therefore, supply curve shifts left. State of engine room An improvement of technolo gy increases productivity and reduces be (Worthington, Britton& Rees 2005, p.135). The article states that Malaysia had been facing declining output for two consecutive age coupled with poor fresh harvest-festival branches due to labour shortage, relax replanting and unsatisfactory yields. This is because Malaysia does not use the most advance technology to obtain palm oil.

If the plain is more technology efficient, it would not be affected greatly by labor shortage. Hence, unfermented technology for soil plate would help Malaysia to increase its yields by many folds. Demand Expectations of future expendit ures If consumers conceive that the future! price of a good will increase, the true demand of a good will increase and vice versa ( Vengedasalam, Madhavan & Kamaruddin 2008, p. 35).The article understandably states that the global demand for palm oil is increasing cursorily but the suppliers like Indonesia and Malaysia are finding it tough to know with the demand. It means that currently, demand is more than supply. Due to this shortage, the suppliers will increase the price...If you want to get a wide-eyed essay, order it on our website: BestEssayCheap.com

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