The table below shows the differences between the producer price and the consumer price of commodities - NSC Agricultural Sciences - Question 2 - 2016 - Paper 2
Question 2
The table below shows the differences between the producer price and the consumer price of commodities.
| COMMODITY | PRODUCER PRICE PER kg/€ | CONSUMER PRI... show full transcript
Worked Solution & Example Answer:The table below shows the differences between the producer price and the consumer price of commodities - NSC Agricultural Sciences - Question 2 - 2016 - Paper 2
Step 1
2.1.1 Identify the commodity with the highest difference in price.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
The commodity with the highest difference in price is 'Processed meat' with a difference of R16.
Step 2
2.1.2 Give ONE reason for the higher price difference in QUESTION 2.1.1.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
One reason for the higher price difference in processed meat is the additional costs associated with processing, which includes labour and marketing expenses.
Step 3
2.1.3 Give ONE possible reason for the small price difference for wheat grain.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
A possible reason for the small price difference for wheat grain is the lower demand and supply dynamics, which tend to stabilize the price.
Step 4
2.1.4 Name the main problem in marketing plant or animal products with regard to:
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
(a) Value: Plant products have a low value per mass/animal unit.
(b) Transportation: Animal/plant products need specialized facilities for safe transport.
(c) Perishability: Animal/plant products are highly perishable and have a limited shelf life.
Step 5
2.1.5 Suggest THREE factors that may have led to the difference between the producer price and the consumer price.
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Transportation costs, which can add significantly to the final consumer price.
Marketing costs that include advertising and packaging.
The perishability factor requiring special treatments to ensure product quality from producer to consumer.
