Economic Principles in Agriculture - JSS2 Agricultural science Lesson Note

Various economic principles guide decision-making in agriculture, shaping production, pricing, and resource management. The law of demand and supply dictates market prices for agricultural products by describing the relationship between demand and supply.

Elasticity measures the responsiveness of quantity demanded or supplied to changes in price or other factors, while profit maximisation involves balancing costs and revenues to maximise profits, guiding decisions on production levels and pricing strategies.