NISM Certifications · NISM-Series-XV: Research Analyst · Fundamental Analysis of Commodities
Which of the following is generally a supply-side factor affecting the price of an agricultural commodity such as soybean in India?
A deficient monsoon is a supply-side factor because it lowers sowing and yields, reducing the quantity of soybean available. Rising incomes, changing diets and population growth are demand-side factors since they change how much consumers want to buy.
- ADeficient monsoon rainfall reducing sowing and yieldCorrect
- BRise in per capita income increasing demand for edible oil
- CChange in consumer dietary preferences
- DGrowth in population
Explanation
Rainfall affects acreage and yield, so it influences how much is produced and supplied. Income growth, dietary preferences and population growth all shift demand, not supply.
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