Answer to Question #242328 in Economics for Pnc

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

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.