Explain the Analysis of food production?

The agricultural sector is known for its diversity and heterogeneity of decisions right from the farm to the entire marketing system. As mentioned earlier, an element of uncertainly prevails for the farmers. It is important for analysts to know how the farm-level decisions are made so as to bring appropriate changes in policies.

Figure:  The supply curve

Analysts are ready to address the basic production decisions farmers must make to function effectively year in and year out: what crops to produce, what combination of inputs to use to produce them, and what total output to produce. The supply curve as illustrated in Figure is a very convenient conceptual and empirical tool which summarizes a great deal of complicated producer decision making in a simple two-dimensional diagram. The supply curve is an essential tool in economists understanding of price formation in market economies; the supply curve is a graphical representation of the relation between two factors - the capital and the labour.