All questions are of equal weight , 100 marks are available in total, and this exam is worth 60 per cent of your final grade.
Questions:
ANSWER FOUR QUESTIONS FROM QUESTIONS 1-6.
1. “The different emphases of the agricultural economics marketing and the agricultural business marketing traditions could be crudely characterised as follows: ‘to agricultural economists marketing is mainly about prices, while business approaches to marketing are mainly about everything except price’.” Discuss whether you agree or disagree with this statement, using examples from agricultural industries and businesses that you are familiar with.
2. What do you understand by the term “own-price elasticity of demand”? Are own-price elasticities of demand positive or negative for typical foods or agricultural products? What is the difference between elastic and inelastic own-price elasticities of demand? Illustrate your answer by drawing a diagram. What are some examples of food or agricultural product demand curves that are own-price elastic? What are some of the shifters of demand curves and do they move the demand curve outwards or inwards? Illustrate your answer by drawing a diagram. How would you go about estimating an own-price elasticity of demand?
