Question on: JAMB Economics - 2003

The unpredictable output of farmers is a major problem when fixing the prices of agricultural products. This is because: * **Supply and Demand:** Fixed prices don't adjust to changes in supply. If there's a bumper harvest (high supply), fixed prices may lead to surpluses and wastage. Conversely, if there's a poor harvest (low supply), fixed prices may lead to shortages. * **Unpredictability:** Agricultural output is heavily influenced by factors like weather, pests, and diseases, making it difficult to accurately forecast supply. This uncertainty makes it challenging to set appropriate fixed prices that balance the interests of both farmers and consumers.