Identify one possible cause of the decline in world export prices of maize.
Explain one change in a factor of demand that would lead to maize prices rising in Malawi despite the increase in domestic production.
With reference to Extract 2 explain two reasons why maize prices are rising in Zimbabwe despite the fall in the world export price of maize.
- Reason 1 [2]
- Reason 2 [2]
Explain, with the help of a diagram, how a rise in the minimum price of maize in Malawi will encourage production.
Consider, with the help of a diagram, whether a subsidy on maize production will benefit both the producers of maize and poorer households in Zimbabwe equally.
Discuss whether maximum prices on staple foods such as maize are likely to be effective in providing food for poorer households in Zimbabwe.