Price Determination and Market Structures - JSS3 Agricultural Science Lesson Note

1. Price Determination:

  - Equilibrium Price: The point where supply equals demand, determining the market-clearing price.

  - Price Fluctuations: Influenced by seasonal factors, weather conditions, and global market trends.

2. Market Structures in Agriculture:

  - Perfect Competition: Rare in agriculture; characterised by many buyers and sellers, homogeneous products, and price-taking behaviour.

  - Monopoly and Oligopoly: Some agricultural markets may exhibit characteristics of monopoly or oligopoly, affecting price dynamics.

  - Monopsony: Occurs when there is only one major buyer for agricultural products, influencing farmers' bargaining power.