MICHELLE C.

SANDIGAN BSBA-MM 1F BASIC MICROECONOMICS

Activity_6_2(8)
1. What are the determinants of supply that were mentioned in the article?
(The number of every paragraph of the article can be used for reference
during the discussion.)

Answer:
The determinants that were mentioned in the article should be the Production
cost, Government policy, Technology and Climate Change.

 Production cost: The article compares the cost of producing palay in the
Philippines with other countries (paragraph 3).
 Government policy: The article mentions the move toward a more open
trade regime for rice in the Philippines (paragraph 2) and the elimination of
agricultural export subsidies (paragraph 9).
 Technology: The article implies that technology affects the supply of palay
by influencing the productivity and efficiency of farmers (paragraph 4 and
6).
 Climate change: The article states that climate change could cause abrupt
price surges due to its impact on crop yields and quality (paragraph 11).

2. Would each determinant increase or decrease the supply of palay?

Explain.

Answer:

 Production cost: If the cost of producing palay in the Philippines is higher

than in other countries, this could decrease the supply of palay. Producers
might be discouraged to produce more if the costs are too high.
 Government policy: The move toward a more open trade regime for rice in
the Philippines could potentially increase the supply of palay. With fewer
restrictions, more producers might be encouraged to grow and sell palay.
However, the elimination of agricultural export subsidies could decrease
the supply if it makes exporting palay less profitable.
 Technology: New investments in production, infrastructure, and services
could increase the supply of palay. With better technology and
infrastructure, producers can grow more palay more efficiently.
 Climate change: It depends upon the season if would be increase or
decrease because it affects in the supply of palay.