Respuesta :
With stable market demand for farm products, the demand will turn relatively small changes in output into relatively larger changes in agricultural prices and income. [TRUE]
Understand the Law of Supply and Supply
The level of demand and supply for goods or services affect each other. They also affect the price of goods or services. As consumers demand more of a good, its price rises and more producers work to provide that good.
The more manufacturers offer a good, the supply increases, causing the price fell. In the reverse scenario, the price falls due to demand for something
product declines, causing fewer firms to produce that good.
When production falls, supply decreases, and prices rise back to equilibrium.
The theory of demand and supply is like a seesaw. When production increases and demand remains the same, the price of goods will decrease. Likewise, if the number of orders increases and inventory remains the same, the cost of goods will increase.
The law of demand and supply means that the seesaw will find a balance from time to time. When there is a change in demand or supply this will change the price, price changes affect demand and supply, creating a balance over time.
Learn more about supply and demand at https://brainly.com/question/13353440.
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