Implications of agricultural price instability problem, Business Economics

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Illustrate the implications of agricultural price instability problem for Less Developed Countries?

Implications of agricultural price instability problem for LDCs:

a. Agricultural products are issue to price volatility through uncertain harvests. When supply increases through growth, then price falls by a greater proportion decreasing producer incomes.

b. Cartels have been unproductive in maintaining price by limiting output.

c. Producers obtain a few pence for each pound spent into western coffee shops. Developed countries keep most of the value added.


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