Answer to Question #244072 in Microeconomics for Sebastian

Question

Esther sikaale is a well known farmer from southern province of zambia who interacts with other members of the zambia farmers association to agree on where to supply their farm onion and tomatoes. Each farming season, he gathers his fellow farmers to discuss on the best on the best onion and tomato pricing model. As a student of principles of economics, assess the above scenario and appropriately use the Zambian statute to discuss the above somewhat behavioral economics.

Answer 1

If each farming season Esther Sikale gathers his fellow farmers to discuss on the best onion and tomato pricing model, then collusion may occur in the market, as the farmers try to set the market prices.