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Agriculture

Agriculture. By Connor O’Brien, Jack Brewster and Alex Fry. Substitutes . Agriculture is a massive market with not many competitors or substitutes. Agriculture is a necessity, Food growth is one of the largest industry's across the world.

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Agriculture

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  1. Agriculture By Connor O’Brien, Jack Brewster and Alex Fry

  2. Substitutes • Agriculture is a massive market with not many competitors or substitutes. Agriculture is a necessity, Food growth is one of the largest industry's across the world. • The only substitute for agriculture is the very small and concentrated genetically modified foods or GM foods for short. GM foods are modified in a lab at the start of the foods creation. GM foods are still farmed in controlled indoor rows but the output is no comparison. • This product is extremely inelastic considering that it is a necessary for our survival.

  3. Complements • A complement of agriculture is the machines that all the farmers to plough the fields namely tractors and combine harvesters. • Other complements include fertilizer, processing plants and factories and stock types for example wheat.

  4. Derived demand • Agriculture has many derived demands these include; • Machine capital • Human labour • Plant fertilizer • Land prices

  5. Composite demand • Composite demand: • Agriculture is in composite demand as it used for many things such as food and clothing • Other composites to this include biofuel, biofuel is very eco-friendly but if it is produced then the crops used to make it are not used as food.

  6. Are the agricultural prices high or low at the moment? • At the moment, the cost for agricultural products is extremely high; this is due to the poor weather we experienced during the summer. This means the prices for them will be very high because they will be scarce and when demand is high the prices increase and since there aren’t many high quality goods but there is a huge demand for them, the price will increase greatly.

  7. demand factors that affect price • Some demand factors that affect the price include the cost of labour. If the workers and employees of the farm or land demand high wages then the price of the product will increase to cover the company expenses. • The next is the cost of machine capital, which can be tractors to the cost at the processing plant. • The cost of the crops such as seeds and ferilizer.

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