Despite the lack of rain during 2018 /2019 agricultural season , the demand curve for mahangu in the producing region of Namibia will always slope downward to the right. Explain what could cause the demand curve for mahangu to slope downward to the right?
Dear Student,
Mahangu is the major food corp in the region of Nambia
Due to lack of rain during agicultural season ,and drought the production of mahangu decreases, farmers would be able to supply less to the market . This leads to shortage in supply
.Due to this there is increase in the number of consumers in the market . As the number of consumers increases, other factors remaining unchanged, at each price, more Mahangu will be demanded. Thus, the demand curve will shift rightwards
This shift indicates that at any price the quantity demanded is more than before. Therefore,there is excess demand in the market . In response to this excess demand some individuals will be willing to pay higher price and the price would tend to rise.
Regards
Mahangu is the major food corp in the region of Nambia
Due to lack of rain during agicultural season ,and drought the production of mahangu decreases, farmers would be able to supply less to the market . This leads to shortage in supply
.Due to this there is increase in the number of consumers in the market . As the number of consumers increases, other factors remaining unchanged, at each price, more Mahangu will be demanded. Thus, the demand curve will shift rightwards
This shift indicates that at any price the quantity demanded is more than before. Therefore,there is excess demand in the market . In response to this excess demand some individuals will be willing to pay higher price and the price would tend to rise.
Regards