Why don't supply restriction programs work well in increasing farm prices and income?

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joexx9442 joexx9442

05-11-2017
Business

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Why don't supply restriction programs work well in increasing farm prices and income?

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andriansp andriansp · Answer 1 · 2017-11-17T02:26:41+01:00

Supply restricted program heavily reduce the amount of products that sold in the market (that mostly came from import) in order to increase the price and income for local business.
But one thing that needed to be considered is, when the price is increased, the demand for that product will decrease at the same time, so eventually the sellers will have to bring the price down again to increase the demand.

WeAreHelping WeAreHelping · Answer 2 · 2020-03-05T14:05:22+01:00

The supply restriction program is very influential in the agricultural sector, especially the number of products available in the market, which are mostly imported products. This makes when prices rise, demand for products will also decrease, so producers must reduce prices to stabilize the market.

In Indonesia, farmers account for around 44.3% of the population but only account for around 17.3% of total gross domestic income. This causes the supply restriction program to be inappropriate in increasing agricultural prices and income.

Further Explanation

Revenues are all receipts in the form of cash or in the form of goods originating from other parties as well as industrial products which are valued based on the amount of money from assets in force at that time. Income is a source of income for someone to meet their daily needs and is a very important means for the survival and livelihood of someone directly or indirectly.

Government programs are a series of government actions designed to achieve certain results. And as an instrument made by the government, government programs can be in the form of general and/or special rules, both written and unwritten that contain choices of actions that are mandatory, prohibited, and or permitted to regulate all citizens, governments, and the business world with the aim Specific.

Limitation of supply is a step to limit the supply of certain items such as the limitation of garlic supply. Where the supply of garlic will be limited in terms of quotas and prices.

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Grade: College

Subject: Business

keywords: Revenue, Goverment programs