Question

15. Comment critically (take a position whether the statement is correct, incorrect or partially correct and support your position based on facts acquired in the course—not based on personal opinion): ‘Even though population increase takes place and economic prosperity increases, innovation in agriculture and reliance on market mechanism will assure availability of food for all.”

Answer 1

The above statement can be analyzed from the theory of demand and supply. It is a true fact that due to the rise of population across the globe, the overall demand for goods and services has increased and has also had its effect on food grains as well.

However, the supply lines are well protected by the ever increasing technological advancements which have increased the yield of crops over the years on one hand, and have reduced the possibility of crops going bad.

As nations grow in size, they increase their expenditure on non conventional farming and have altered the very genome of crops to ensure that supply lines can be met and economies can sustain themselves.

Therefore, to reap in profits, and to ensure maximum supply possibility governments and private firms alike have the incentive of increasing supply lines which they will always do and this will assure availability of food for all as supply goes on to increase in volume.

It is simple micro economics whereby producers have added advantage of improving technology and do their best to earn more money. As demand grows the supply lines will continue to innovate in the expectation for more profits. As more profits are realized, people have more money to spend on innovation and the cycle of increased production further continues.

Please feel free to ask your doubts in the comments section.