Illustrating graphically and specifying the assumption upon your reasoning is based describe briefly.

Question

i.tye the effect on the price and output of fresh maize of adverse weather conditions

Answer 1

To illustrate the effect of adverse weather conditions on the price and output of fresh maize graphically, we can use a supply and demand diagram.

Assumption: We assume that the agricultural sector is the only industry affected by adverse weather conditions, and there are no shifts in demand due to other factors such as changes in consumer preferences or population.

In the graph, we will have price on the y-axis and quantity on the x-axis. The initial supply and demand curves for fresh maize represent the equilibrium price and quantity under normal weather conditions.

When adverse weather conditions occur, such as drought or excessive rainfall, the supply of fresh maize is negatively affected. This means that the supply curve will shift to the left. The new supply curve will be placed to the left of the original curve, indicating a reduced quantity supplied at each price level.

Due to the lower supply of fresh maize, there will be less quantity available in the market at any given price. This change in supply will cause the equilibrium price to increase, as shown by a movement upwards along the demand curve.

The increase in price signifies that consumers will have to pay more for fresh maize due to the scarcity caused by adverse weather conditions. However, the quantity demanded may not change significantly since maize is a staple crop consumed by many.

Overall, the graphical depiction shows that adverse weather conditions decrease the supply of fresh maize, leading to higher prices and possibly a slight decrease in quantity consumed.

It's important to note that the actual impact of adverse weather conditions on price and output may vary depending on factors such as the severity and duration of the weather conditions, the ability of farmers to adapt or mitigate the impact, and the availability of alternative sources or substitute crops.