Demand and Supply

S1 Price Question 1 Supply landed estate of genius The state of nature includes every innate(p) force that will enamor production such as weather and natural disasters. This figure usually affects the agriculture orbit (Parkin 2010, p. 66). out-of-pocket to La Nina impression which is a natural disaster, in that respect were fertilizer cuts and wear shortage. This will ca put on supply blaze 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 superintend veget able oil exporter to the whole world. This means that the world confide greatly on these two countries. So, the number of suppliers is very some and in brief it will non be able to cater for the extend global demand. Therefore, supply curve shifts left. State of engine room An improvement of engineering increases productivity and reduces cost (Worthington, Britton& Rees 2005, p.135). The article states that Malaysia had been facing declining output for two consecutive historic period coupled with poor fresh harvest-festival branches due to labour shortage, easy 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, newly technology for soil plate would help Malaysia to increase its yields by many folds. Demand Expectations of f uture legal injurys 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 all the way states that the global demand for palm oil is increasing quick but the suppliers like Indonesia and Malaysia are finding it tough to sell 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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