Market demand and prices influence farmers’ decisions about:

The correct answer is: d) All of the above

Market demand and prices influence farmers’ decisions about what crops to grow, the area under cultivation of different crops, and the adoption of new crop varieties.

• What crops to grow: Farmers will choose to grow crops that are in high demand and that will fetch a good price. If the demand for a particular crop is low, or if the price of that crop is low, farmers will be less likely to grow that crop.
• Area under cultivation of different crops: Farmers will also decide how much land to
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