The Davis Family Grows Organic Vegetables. The Davis family farms organic vegetables to sell at a farmer’s market nearby. Which are the elements that have a direct impact on their profit?
The Davis Family Grows Organic Vegetables
The following two elements have a direct impact on the Davis family’s profit from cultivating organic veggies to sell:
A Rise In Demand For Organic Produce: When the demand for a thing rises, the price of that product rises as well. This is due to the supply and demand relationship. When demand increases, supply decreases, allowing things to sell for a higher price because there are fewer of them.
An Increase in the Cost of Farm Equipment: If they have to spend more money on equipment, their final profit diminishes since they have to spend more money to grow their produce, but the price they sell it at stays the same unless they raise it. It has a direct impact on profit.
“A change in the market price for non-organic fruit” cannot be deemed to affect their profit DIRECTLY, but it can be considered to affect it INDIRECTLY. For example, if the price rises, more individuals may begin purchasing organic produce because the price gap narrows and the benefits of consuming organic produce increase. But because this isn’t a sure thing, it doesn’t apply.
Also Read: How to Make Money Farming 5 Acres?
