1.

The Price Support and stabilization program, which refers to the control or dampening of the
inflation rate is one of the primary objectives of Philippine government policy. Price stability, as
opposed to high inflation rates or the rapid increase in the general price level of goods and
services, has been shown to be conducive to long run and sustainable growth of the economy.
The price stabilization measures which take the form of production related as well as fiscal and
monetary policies will enable the Philippine to weather future crises and improve their global
competitiveness. The government is committed to stabilizing prices by augmenting the food
supply and ensuring that the supply chains of goods, especially food, will be unhampered.
2. The five major factors that the market study seeks to determine are the following;
- Is the target market worth anything for my business?
- Is the target market manageable enough?
- Who will I be fighting to attract the target market?
- What do I want out of my market research in the first place?

- Do I need help doing my market research?

1. Statistical demand analysis is a set of statistical procedures used to discover

the most important real factors affecting sales and their relative influence. The
factors most commonly analyzed are prices, income, population and
promotion. Statistical demand analysis consists of expressing sales (Q) as a
dependent variable and trying to explain sales as a function of a number of
independent demand. Using multiple-regression analysis, various equations
can be fitted to the data to find the best predicting factors and equation.
Statistical demand analysis can be very complex and the marketer must take
care in designing, conducting and interpreting such analysis. Yet constantly
improving computer technology has made statistical demand analysis an
increasingly popular approach to forecasting.

1. Tariffs and quotas are policies aimed to increase the prices of imported goods to
promote the consumption of domestic goods. A tariff is a tax imposed on imports
and on exports. A quota sets a numerical limit on how much of a product can be
imported into a country. The additional tax, or tariff, on imported goods can
discourage foreign countries or businesses from trying to sell products in a foreign
country. The additional taxes make the foreign import either too expensive or not
nearly as competitive as it would be if the tariff didn't exist. The numerical limits
imposed on imported goods through quotas ultimately leads to higher prices paid by
consumers. Consumers who should be buying lemon, if they could get them at
the true price, but are not buying them at the high price created by the tariff.
Another negative aspect of these trade barriers is that they result in a limited choice
of products and would therefore force customers to pay higher prices and accept
inferior quality.
2. The four general factors affecting the demand for a particular farm product are;
  Income - When income rises, so will the quantity demanded.
When income falls, so will demand. But if your income
doubles, you won't always buy twice as much of a particular
good or service.
 Prices of related goods or products - The price of
complementary goods or products raises the cost of using the
product you demand, so you'll want less. The opposite
reaction occurs when the price of a substitute rises. When that
happens, people will want more of the good or product and
less of its substitute.
 Tastes - When the public’s desires, emotions, or preferences
change in favor of a product, so does the quantity demanded.
Likewise, when tastes go against it, that depresses the
amount demanded.
 Number of buyers in the market - The number of consumers affects
overall, or “aggregate,” demand. As more buyers enter the
market, demand rises.
3. Liquidity refers to both an enterprise's ability to pay short-term bills and
debts and a company's capability to sell assets quickly to raise cash. An
example of a ratio commonly used for liquidity is current ratio. The current
ratio measures a company's ability to pay off its current liabilities
(payable within one year) with its current assets such as cash,
accounts receivable, and inventories. The higher the ratio, the
better the company's liquidity position.

Solvency refers to a company's ability to meet long-term debts and

continue operating into the future. An example of a ratio commonly used for
solvency is interest coverage ratio. The interest coverage
ratio measures the company's ability to meet the interest expense
on its debt, which is equivalent to its earnings before interest and
taxes (EBIT). The higher the ratio, the better the company's
ability to cover its interest expense.

4. The law of supply and demand is a theory that explains the

interaction between the sellers of a resource and the buyers for
that resource. The theory defines the relationship between the
price of a given good or product and the willingness of people to
either buy or sell it. Generally, as price increases, people are
willing to supply more and demand less and vice versa when the
price falls. Supply and demand have an important relationship
 because together they determine the prices and quantities of
most goods and services available in a given market.
The relationship between supply and demand balances out at a
point in the future. This point–at which supply is equal to
demand–is called the equilibrium price. At the equilibrium point,
the market price for a given good ensures that the quantity of
goods supplied is equal to the number of goods demanded. At
this point, prices are perfectly set to interest consumers to
purchase goods; at the same time, ensuring that companies
produce neither too much nor too little product.
A farmer can utilize the information about supply and demand to price his product in a
case where a farmer sets a low price, the demand for his product or service will
increase. Oppose to that, if a farmer sets a price which is too high, the demand
will decrease.
5. For me, the best marketing plan for this plantation to maximize the farmer’s income is
the direct farmer-to-consumer marketing. In this method, the farmer sell their products
directly to consumers. Establishing this direct farmer-to-consumer marketing outlet is in
favor for the farmer’s desire to increase the financial returns from farm production. This
opportunity for increased returns stems from opportunities to reduce marketing costs
attributed to intermediaries in the supply chain, and consumer desire to buy riper,
fresher, higher-quality fruits. When farmer’s become the “retailers,” they have the
opportunity to sell at or slightly above retail supermarket prices and avoid paying for the
services of wholesalers and retailers. Bypassing intermediaries allows farmers to receive
a higher percentage of the consumer’s food fee and thus enjoy a higher return per unit
sold.
6.