Answer to Question #242324 in Economics for Pmc

Question

esther sikale is a well known farmer from southern province of zambia farmers association to agree on to supply their farm onions and tomatoes each farming season he gathers his fellow farmers to discuss on the best onion and tomato pricing model as a student of principals of economics,asses the above scenario and appropriately use the zambia statute to discuss the above behavioral economics.

Answer 1

Specific elements of the cost of the relevant type of agricultural products are calculated based on prices, tariffs, interest rates, and labor remuneration of the period in which guaranteed purchase prices are introduced.

When forming guaranteed purchase prices for agricultural products, the following should also be taken into account:

the level of contractual and effective guaranteed prices in this and neighboring regions;

market conditions for this type of product;

the number of financial resources provided for procurement for state needs.