What happens to the price of a agricultural product when demand exceeds supply?
When demand exceeds supply for an agricultural product, the price increases. This is because when there is a shortage of a product, buyers are willing to pay more to ensure they can still get the product. The limited supply and high demand create competition among buyers, driving up the price. Sellers are aware of this increased demand and can take advantage of the situation by raising their prices. Hence, in such a scenario, the price of the agricultural product will increase.