Nowadays, due to the mindset of some businessman and also because of the trends in business. Lands that were formerly used for farming are now developed to be a residential or commercial spaces. People can avail houses with a very low cost because of the increase of its trends in the market but people were unaware of its negative impacts not only for the farmers but also to us, as consumers. Since most of the lands were already been developed, the portion of lands that were used to plant crops and other agricultural products. The price of the agricultural products will be higher since the supplies decreases. This is in application of the Law of Demand and Supply. The most basic laws in economics are the law of supply and the law of demand. Almost every economic event or phenomenon is the product of the interaction of these laws including the possible effects if the lands used for agriculture will be developed into residential and commercial spaces.
Basic Law of Demands and Supplies
1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
2. If the demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.
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