2.1 The illustration below shows a type of marketing system used in the agricultural sector - NSC Agricultural Sciences - Question 2 - 2019 - Paper 2

1. Production co-operatives: These are organizations where producers come together to process and market their products collectively.
2. Marketing co-operatives: These organizations assist farmers in marketing their goods, ensuring better prices.

Marketing is a long-term strategy that involves all activities associated with production, pricing, promoting, and distributing products. It focuses on meeting customer needs and developing relationships. In contrast, selling involves the exchange of goods for cash, primarily focusing on the transaction at hand.

1. Perishability/Spoilage: Agricultural products often have a short shelf life, leading to wastage.
2. Transportation Issues: Poor infrastructure can hinder the ability to transport products efficiently from farms to markets.

Graph B represents Price inelasticity of demand, where changes in price result in limited changes in demand.

Graph A represents Price elasticity of demand, where changes in price lead to significant changes in demand.

For Graph B, a change in price resulted in little to no change in demand, indicating inelastic behavior. For Graph A, a change in price resulted in a substantial change in demand, indicating elastic behavior.

1. The nature of the produce: Essential goods tend to have inelastic demand.
2. Availability of substitute products: More substitutes typically increase elasticity.
3. Time period: Demand may become more elastic over time as consumers adjust.

To draw the line graph, label the x-axis as 'Quantities (Pockets)' and the y-axis as 'Price (R)'. Mark points based on the data provided (for example, at Price 20, the Quantity is 3500) and connect the dots to visualize the demand curve.

The higher the price of the fruit, the lower the quantity of fruit demanded. This inverse relationship indicates that as prices rise, consumer demand tends to decrease.

1. To test the feasibility of the business: A business plan helps assess whether the business idea is viable and aligns with market needs.
2. To ensure effective financial management: It provides a structured approach to budgeting and financial forecasting.

1. An overview of the business, including management structure.
2. A financial plan detailing costs, revenues, and funding sources.
3. A marketing strategy outlining target markets and sales approach.

1. Difficulty in accurate market research: Gathering reliable data can be challenging.
2. Financial forecasting challenges: Estimating future costs and revenues can be uncertain.

1. Identifying an opportunity: Recognizing a gap in the market or a business idea.
2. Research and resource mobilization: Analyzing what is needed to establish the business and gathering resources.
3. Production and profit making: Launching the business and working towards generating profit.

1. Innovation: The ability to generate new ideas and solutions.
2. Perseverance: Staying committed and resilient despite challenges.
3. Knowledgeable: Having a strong understanding of the industry and market trends.