Fixing the prices of agricultural products can be a problem because of the
Answer Details
Fixing the prices of agricultural products can be a problem because of the unpredictable output of farmers. Agricultural production is affected by factors such as weather conditions, pests and diseases, and availability of inputs, which are beyond the control of farmers. When prices are fixed, it does not take into account the unpredictability of the output of farmers, which can lead to surpluses or shortages of products. Surpluses may result in wastage and financial losses for the farmers, while shortages may lead to higher prices and shortages for consumers. Additionally, farmers may be discouraged from investing in new technologies and methods of production if they are not rewarded for their efforts. Therefore, fixing prices of agricultural products can lead to market distortions and inefficiencies.