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This website provides a simplistic explanation of the law of supply and the determinants of supply. It provides readers with an easy example of how fisherman supply tuna based on the determinants of supply such as availability and price of permits. Furthermore, it is made evident that the determinants of supply impact quantity of supply at any price.

This website is very useful because not only does it give a simplistic explanation of determinants of supply but it also defines the terms used in order to understand supply curve graphs. As well as it made clear that quantity of supply can increase unrelated to price of supply. The example used was that if more people could get permits more readily supply of tuna will increase at any price, which debunks misconceptions that as price increases so does supply and vice versa.

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Supply and the determinants of supply (article) | Khan Academy

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Key Terms Term | Definition -|- **supply** | a schedule or a curve describing all the possible quantities that sellers are willing and able to produce, at all possible prices they might encounter in a particular period of time; supply is represented in a graphical model as the entire supply curve.

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This website uses the term “supply shocks” to refer to external forces (determinants) that impact the supply curve. The four “supply shocks” discussed was, input prices, technology, expectations and number of producers and how these four shocks impact the increase and/or decrease in supply. A change in supply refers to a shift in the supply curve which affects the whole diagram and every interaction between price and quantity, whereas a change in quantity supplied refers to a movement along the supply curve, exploring different points on the same curve.

This website was different from the others in that it distinguished the difference between change in supply and change in quantity of supplied. Before reading this website we were unaware of the differences between the two.

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Learning Objectives

By the end of this section, you will be able to:

Understand the difference between supply and quantity supplied

Know the four main determinants of supply

Explain supply shifts from both horizontal and vertical perspectives

Know the difference between explicit and opportunity costs

It's as Easy as Cake

In section 3.4 we looked at the impact of price on the supply curve, but there are many other factors that affect a company's decision to produce. For example, new innovations are always coming out to make cake decorating and baking easier, whether it is machines like the one shown above, or faster and better mixers. These inventions save time and energy at different levels of production. External forces like these impact our supply curve. The four supply shocks we will examine in detail include:

1. Input Prices

2. Technology

3. Expectations

4. Number of Producers

Whereas changes in price change quantity supplied, these factors shift supply. This is distinctly different from changes in quantity supplied as these shocks affect the price-quantity interaction at every point on our curve.

Is supply the same as quantity supplied?

As with demand and quantity demanded, supply is not the same as quantity supplied. When economists talk about supply, they mean the relationship between a range of prices and the distinct quantities supplied, as illustrated by a supply curve. When economists talk about quantity supplied, they mean only a certain point on the supply curve. Like demand, this means a change in quantity supplied is very different than a change in supply.

refers to a A change in supply shift in the supply curve, affecting the whole diagram and every interaction between price and quantity

refers to a A change in quantity supplied movement along the supply curve, exploring different points on the same curve.

We examined changes in quantity supplied in Topic 3.4. In this section, we discuss changes in supply.

Input Prices

Perhaps the most obvious shock to the supply curve is the cost of inputs. Also known as 'Factors of Production', these are the combination of labor, materials, and machinery used to produce goods and services. Our cupcake supply curve was based on the assumption of specific implicit and explicit costs which are prone to change. Any changes to these costs will affect our marginal costs at every point.

Changes in Explicit Costs

Changes in explicit costs are the easiest to conceptualize. We determined that the explicit cost of our cupcake supplies was around $0.50 each. What if icing sugar, an input to cupcakes, becomes more expensive? This will raise our marginal costs at all points of production, causing an upward shift in our supply curve.

Changes in Opportunity Costs

Opportunity cost is more of an abstract concept to think about in terms of input prices. Essentially, if cookies become more profitable to produce, our supply model considers the higher opportunity cost as an increase in our cost of making cupcakes. Suppose the market price for cookies increases from the original $0.50 to $1.00. Now, our MC will be as follows:

MC of 1st 5 cupcakes = $0.5 (explicit) + $0.8 (implicit) =$1.3 (increased from $0.9)

MC of 2nd 5 cupcakes = $0.5 (explicit) + $1.6 (implicit) =$2.1 (increased from $1.3)

MC of 3rd 5 cupcakes = $0.5 (explicit) + $2.4 (implicit) =$2.9 (increased from $1.7)

Notice this increase in marginal cost occurs at all levels, meaning the change will shift the entire supply, changing the quantity supplied at every point.

*For an interesting exercise, think about how a price change to an input for both cookies and cupcakes would affect production. On one hand, explicit costs would be higher, but opportunity costs would be lower as cookies would be less profitable. Note from now on, we will generally talk about input costs as increasing or decreasing (rather than looking at explicit and implicit costs) to simplify our analysis.

How does the supply curve actually change? In our discussion of demand, we explained that you could view a demand shift as vertical, as consumers' willingness to pay changes at every quantity demanded; or as horizontal, as the amount consumers buy changes at every price level. There is a similar process for supply.

Vertical Shift - Figure 3.5a

The first way to view a shift in supply is as a vertical shift. Recall that supply represents the producer's MC at each point of production. Assuming that in the original supply curve our MC of producing 15 units is $1.60, if costs increase by a dollar, we will see the marginal cost increase to $2.60. Since input prices increase by a dollar regardless of our production level, the entire curve will shift up by $1.00.

Horizontal Shift - Figure 3.5b

The next way to view a supply shift is slightly less intuitive. In Figure 3.5b, when the price of cupcakes is $1.80, our quantity supplied is equal to five cupcakes. Consider how this will change with a $1.00 decrease in input prices. Originally, we produced 5 cupcakes because our price was equal to marginal costs at that level When our costs fall, our price is still $1.80, but our costs are $0.90. Since P>MC, it is efficient to produce more than 5 units. Using marginal analysis, we find it is efficient to produce 17 units at this price.

Whereas before, it was only viable to produce 5 units at the price of $1.80, we can now produce up to 17 units efficiently. This causes the supply curve to shift right.

Most shocks will cause a uniform shift as can be explained vertically or horizontally. Technology, expectations, and the number of producers will all shift the supply curve in the same way as depicted.

Technology

As mentioned at the beginning of the section, changes in technology will also shift the supply curve. Why is that the case? Technology changes have a direct impact on the cost of production. If suddenly a new innovation allows you to cut your work time in half, you will cut down your costs of labor. If technology allows you to conserve wasted resources, then your input prices will decrease, These changes will increase supply, shifting the curve to the right. Technological Decay is a less common case where technological progress is reversed. What if the city banned the use of a certain cupcake icing machine because the noise was bothering other residents? This would cause you to go back to the less efficient practice of icing by hand, thereby increasing your costs. In summary:

Improvements in technology will lower costs of production and increase supply

Decay in technology will increase costs of production and decrease supply

Expectations

Like demand, expectations of the supply price affect production decisions. Production decisions are a lot like playing the stock market; if we are producing cupcakes and cookies to sell to the store tomorrow, we have to produce based on the current, incomplete knowledge we have about those prices. Normally, you will be confident that these prices will stay relatively stable, but if you have reason to believe the prices of cupcakes will drastically rise in the morning, you may devote more of your attention to producing them. Expectations are usually based on some form of evidence or signal and can cause supply shifts quite suddenly. In summary:

If the firm expects prices to rise, supply will increase

If the firm expects prices to fall, supply will decrease

Number of Producers

The final determinant of supply is the number of producers. So far, we have examined just one firm. Recall in section 3.3 we showed that the competitive market is characterized by many potential buyers, and added up individual demand curves to produce aggregate demand. Likewise, the market is made up of many other producers. By adding all the suppliers together, we get aggregate supply. This can affect total supply. If for example, four new firms enter the cupcake market, whereas Alaythia Cakes was producing just 5 cupcakes, now the firms each produce 5 cupcakes for a total of 25 (assuming that the individual supply curves are the same, which need not be the case). In summary:

When morefirms enter the market, supply will increase

When firms leave the market, supply will decrease

Summary

The four supply shocks have been summarized in the table below. Once again, the best way to learn these shifts is not to memorize them, but to practice shifts on the diagram to view their effects.

Glossary

Aggregate Supply

total of all goods and services (including exports and imports) supplied at every price level, within a national economy during a given period. Also called total output

Explicit Costs

direct costs of production such as rent, salaries, wages, or other input costs. Easily recognizable for classification and recording

Factors of Production

the combination of labor, materials, and machinery that is used to produce goods and services; also called inputs

Implicit Costs

the opportunity costs of an action, associated with an actions trade-offs

Shift in Supply

when a change in some economic factor (other than price) causes a different quantity to be supplied at every price

Exercises 3.5

1. Which of the following will NOT shift the market supply curve of good X?

2. Which of the following is NOT a determinant of the supply of good X?

The following TWO questions refer to the diagram below.

3. At what price will quantity supplied equal 3 units?

4. At what price will producer surplus equal $2?

5. A decrease in supply is, graphically, represented by:

6. Which of the following is NOT a determinant of the supply of good X?

7. Which of the following is NOT a determinant of the supply of good X?

8. Martin is selling his viola. The minimum amount he needs to be paid for the viola is $15,500. He find a buyer for who is willing to pay $22,400, but this buyer insists that Martin pays for delivery of the viola. The cost of delivery is $700. Martin's producer surplus from selling his viola is equal to _____.

9. Which of the following statements about inferior goods is/are FALSE?

I. Inferior goods are those that we will never buy, no matter how cheap they are.
II. Inferior goods are those that we buy more of, if we become poorer.
III. Inferior goods are those that we buy more of, if we become richer.

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By the end of this section, you will be able to: Understand the difference between supply and quantity supplied Know the four main determinants of supply Explain supply shifts from both horizontal and vertical perspectives Know the difference between explicit and opportunity costs In section 3.4 we looked at the impact of price on the supply curve, but there are many other factors that affect a company's decision to produce.

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This video uses illustrations to explain supply determinants. Firstly the video defines the terms used  to describe supply determinants. Using cartoon graphics such as donuts in a café and examining the determinants of supply such as cost of production, profitability of substitutes in supply, profitability of goods in joint supply, expectations of the producer, number of suppliers.

We found this video interesting because it wasn’t in complete lecture form, rather illustrations were used as well as the narrator used a marker to write the flow of information along with the illustrations. As well as using an example that was not complicated and depicted the determinants of supply in an understandable manner.

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This video explores the relationship between price and quantity supplied. It looks why the supply curve slopes upward and how much of a product suppliers are willing to supply at varying prices.  Using the supply of oil as an example, this video explains that as the price of oil goes up so does the number of barrels of oil supplied based on factors such as cost of extraction. Higher costs of extraction equal higher price for oil.

We found this video to be different from other videos because as the relationship between oil supplied and price was explained a graph was used to show how this would affect the supply curve. As examples were given a graph was depicted to show how the determinants impacted the slope of the curve.

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This image depicts how the change of price of a supply causes a movement along a supply curve. The points along the supply curve represent the relationship between the price of a supply and the quantity of supply. As price increases so does the quantity of supply and vice versa..

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This image shows the difference between a movement along a supply curve versus a shift in the supply curve. A shift in the supply curve occurs because of changes in non-price determinants of supply and a movement along the supply curve occurs due to changes in the price.

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This video is a great visualization of non-price determinants of the shift in the supply curve. The video uses examples of how technological innovations, taxes and subsidies, input of productions, etc. can shift the supply curve.

By using a graph in order to illustrate how the determinants of supply can shift the quantity of supply is useful in understanding just how determinants of supply can shift the supply curve. This video was easy to follow because it provides viewers with definitions as well as providing Canadian examples to the determinants.

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This video defines what supply is, the law of supply, change in quantity versus changes in supply, as well as determinants of supply. Both the relationship of price and non-price determinants of supply are used to examine the quantity of supply of energy drinks. As each factor is consider the points are graphed in a supply curve graph. Showing how a price change leads to a movement along a supply curve, a shift in a supply curve is a result of other changes in the supply which are the non-price determinants of supply.

This video used an acronym for the non-price determinants of supply which was “stores”, subsidies and taxes, technology, other related goods’ prices, resource costs, expectations and size of the markets. This was the only video that used an acronym as a useful way to remember non-price determinants of supply.

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The housing market is often referred to as a seller’s market or a buyer’s market depending on the supply and demand for homes. During a buyer’s market more homes are on the market, prices tend to be lower and homes are more likely to sit unsold, and as such housing surplus can slow prices and can lead to price reductions. In a seller’s market there are more buyers than homes, as such prices for homes tend to be higher because of increased demand. Both buyer and seller’s markets are dependent on supply.

This website examined numerous factors that can impact supply such as costs of production, delays in production as caused by weather and changes in regulations that make it harder to build and as such causing a decrease in the quantity of homes for sale, then fewer houses are supplied, causing the supply curve to shift leftwards. It was interesting to read about how the determinants of supply are applied to the housing market.

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4.1 Housing Supply and Demand

Learning Objectives

After you have read this section, you should be able to answer the following questions:

1. What factors underlie the demand for housing?

2. What factors underlie the supply of housing?

3. What determines the amount of housing traded and the price of housing?

The first two articles we quoted from made it clear that the housing market was heavily affected by the financial crisis. More than that, it was where the crisis began-and so it is where we begin our story.

We start with the market for new homes, which are part of real gross domestic product (real GDP). (The buying and selling of existing homes is not counted in GDP.) New homes are supplied by construction firms and demanded by families wishing to live in a new home. New homes are also bought by speculators who purchase houses in the hope that they can resell them for a higher price in the future.

Toolkit: Section 16.6 "Supply and Demand"

Supply and demand A framework that explains and predicts the equilibrium price and equilibrium quantity of a good. is a framework we use to explain and predict the equilibrium price and quantity of a good. A point on the market supply curve shows the quantity that suppliers are willing to sell for a given price. A point on the market demand curve shows the quantity that demanders are willing to buy for a given price. The intersection of supply and demand determines the equilibrium price and quantity that will prevail in the market.

The toolkit contains a presentation of supply and demand that you can use for reference purposes in this and the following chapters.

The supply-and-demand framework applies to the case that economists call a competitive market A market that satisfies two conditions: (1) there are many buyers and sellers, and (2) the goods the sellers produce are perfect substitutes. . A market is said to be competitive, or, more precisely, to exhibit perfect competition, under two conditions:

1. There are many buyers and many sellers, all of whom are small relative to the market.

2. The goods that sellers produce are perfect substitutes.

In a competitive market, buyers and sellers take the price as given; they think their actions have no effect on the price in the market.

Demand

The market demand for housing is shown in Figure 4.1 "The Market Demand for Houses". We call this the market demand curve The number of units of a good or a service demanded at each price. because it reflects the choices of the many households in the economy. In macroeconomics, we typically look at markets at this level of aggregation and do not worry much about the individual decisions that underlie curves such as this one.

Figure 4.1 The Market Demand for Houses

The market demand curve shows the quantity of houses demanded at each price.

As the price of housing decreases, the quantity demanded increases. This is an example of the law of demand, which derives from two effects:

1. As the price of a good or service decreases, more individuals choose to buy a positive quantity rather than zero.

2. As the price of a good or a service decreases, individuals choose to buy a larger quantity.

In the case of the market for housing, the first of these is more important. Most people own either zero houses or one house. As houses become cheaper, more people decide that they can afford a house, so the quantity demanded increases. A few people might decide to buy an additional house, but they would presumably be in the rich minority. For other goods, such as chocolate bars or shoeshines, the second effect is more important: as price decreases, people increase the quantity that they buy.

Shifts in Demand

When we draw a demand curve, we are varying the price but holding everything else fixed. In particular, we hold fixed the level of income, the prices of other goods and services in the economy, and the tastes of households. If these other factors change, then the market demand curve will shift -that is, the quantity demanded will change at each price.

A leftward shift of the market demand curve for houses, as indicated in Figure 4.2 "A Shift in the Market Demand Curve", could be caused by many factors, including the following:

A decrease in the incomes of households in the market

Concerns about the future health of the economy

A reduction in the price of a typical apartment rental

An increase in the interest rates for mortgages

A change in social tastes so that buying a house is no longer viewed as a status symbol

Supply

The counterpart to the market demand curve is the market supply curve The number of units of a good or a service supplied at each price. , which is obtained by adding together the individual supply curves in the economy. The supply curve slopes upward: as price increases, the quantity supplied to the market increases. As with demand, there are two underlying effects.

1. As price increases, more firms decide to enter the market-that is, these firms produce some positive quantity rather than zero.

2. As price increases, firms increase the quantity that they wish to produce.

Figure 4.3 The Market Supply of Houses

The market supply curve shows the quantity of houses supplied at each price. It has a positive slope: as the price of houses increases, the number of houses supplied to the market increases as well.

Shifts in Supply

When we draw a supply curve, we again vary the price but hold everything else fixed. A change in any other factor will cause the market supply curve to shift. A leftward shift of the market supply curve for houses, as indicated in Figure 4.4 "A Shift in Supply of Houses", could be caused by many factors, including the following:

Increases in the costs of production, such as wages, the cost of borrowing, or the price of oil

Bad weather that delays or damages construction in process

Changes in regulations that make it harder to build

Market Equilibrium: What Determines the Price of Housing?

We now put the market demand and market supply curves together to give us the supply-and-demand picture in Figure 4.5 "Market Equilibrium". The point where supply and demand meet is the equilibrium in the market. At this point, there is a perfect match between the amount that buyers want to buy and the amount that sellers want to sell.

Toolkit: Section 16.6 "Supply and Demand"

Equilibrium in a market refers to an equilibrium price and an equilibrium quantity and has the following features:

Given the equilibrium price, sellers supply the equilibrium quantity.

Given the equilibrium price, buyers demand the equilibrium quantity.

Figure 4.5 Market Equilibrium

In a competitive market, equilibrium price and quantity are determined by the intersection of the supply and demand curves.

We speak of equilibrium because there is a balancing of the forces of supply and demand in the market. At the equilibrium priceA price such that the quantity supplied equals the quantity demanded. , suppliers of the good can sell as much as they wish, and demanders of the good can buy as much of the good as they wish. There are no disappointed buyers or sellers. Because the demand curve has a negative slope and the supply curve has a positive slope, supply and demand will cross once, and both equilibrium price and equilibrium quantity The quantity supplied and demanded at the equilibrium price. will be positive.

Table 4.1 "Market Equilibrium: An Example" provides an example of market equilibrium. It gives market supply and market demand for four different prices. Equilibrium occurs at a price of $100,000 and a quantity of 50 new houses.

Table 4.1 Market Equilibrium: An Example

Economists typically believe that a perfectly competitive market is likely to reach equilibrium. The reasons for this belief are as follows:

If price is different from the equilibrium price, then there will be an imbalance between demand and supply. This gives buyers and sellers an incentive to behave differently. For example, if price is less than the equilibrium price, demand will exceed supply. Disappointed buyers might start bidding up the price, or sellers might realize they could charge a higher price. The opposite is true if the price is too high: suppliers might be tempted to try cutting prices, while buyers might look for better deals.

There is strong support for market predictions in the evidence from experimental markets. When buyers and sellers meet individually and bargain over prices, we typically see an outcome very similar to the market outcome in Figure 4.5 "Market Equilibrium".

The supply-and-demand framework generally provides reliable predictions about the movement of prices.

Pictures like Figure 4.5 "Market Equilibrium" are useful to help understand how the market works. Keep in mind, however, that firms and households in the market do not need any of this information. This is one of the beauties of the market. All an individual firm or household needs to know is the prevailing market price. All the coordination occurs through the workings of the market.

Key Takeaways

The primary factor influencing demand for housing is the price of housing. By the law of demand, as price decreases, the quantity of housing demanded increases. The demand for housing also depends on the wealth of households, their current income, and interest rates.

The primary factor influencing supply of housing is the price of housing. As price increases, the quantity supplied also increases. The supply of housing is shifted by changes in the price of inputs and changes in technology.

The quantity and price of housing traded is determined by the equilibrium of the housing market.

Checking Your Understanding

1. What would be the impact of a decrease in the cost of borrowing on the market supply curve of housing? What would be the impact of a decrease in the cost of borrowing on the market demand curve?

2. Name two events that would cause the housing market supply curve to shift rightward. Name two events that would cause the housing market demand curve to shift rightward.

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After you have read this section, you should be able to answer the following questions: What factors underlie the demand for housing? What factors underlie the supply of housing? What determines the amount of housing traded and the price of housing?

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Rapid climate change is increasingly negatively impacting Canada’s agricultural sector.  Canada’s agricultural regions will see drier and hotter summers as well as an increased winter and spring precipitation. Climate change is not only detrimental to crops but to live-stock.  The Canadian prairie provinces experienced a hot, dry spring that caused widespread drought, which in turn means crops were not able to grow without precipitation. Technological innovations in the farming sector were examined and how it would be useful to combat climate change and its impact on agricultural supplies.

We chose this website because it talks in-depth about how weather a non-price determinant of supply can impact agricultural supply in Canada. The most important piece of information that I found useful in this website is how climate change has a huge impact on the agricultural supply. Weather changes impacts crop growth, live-stock health, diary among many other agricultural supply and as such quantity of supply will decrease

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Tunnicliffe began to notice that the changing climate was throwing reliable, longstanding patterns and expectations out the window. She notes that unpredictable seasonal weather now means "the map has been wiped clean a little bit," and says: "I mentor a lot of new growers. I wish I could give them that list of planting dates that I got. But I can't do that."

Farmers know all too well that agriculture is highly dependent on weather. Modern methods, techniques, and technologies have made today's crop and livestock farms increasingly productive, but agricultural success still depends on getting just the right amount of rain and just the right amount of heat at just the right time of year.

The planting, maturing, and harvesting of crops all depend on consistent seasonal patterns.

Livestock depend on feed, water, and a tolerable range of heat and humidity for healthy, productive growth.

Climate helps determine which pests and diseases will spread, and so how much time, effort, and money farmers must spend on herbicides, insecticides, and other defences.

Beyond the harvest, patterns of temperature and weather affect the entire supply chain of storage and transportation that brings food from the field to the dinner plate.

From the largest farm to the smallest market garden, from planting to eating, and at every stage in the cycle of production -from choosing seed to transporting livestock - agriculture and agri-business thoroughly depend on climate. And the climate is changing.

Farming in a hotter climate

Seasonal temperatures are very important to farming. The length of the growing season, typical average temperatures, and the timing and severity of hot and cold spells all work together to determine what crops can be grown. Climate models show that Canada's cold season will shrink, leaving a longer growing season. But with that possibly good news comes a huge increase in high temperature events and changes in precipitation patterns - especially the increasing likelihood of flooding and drought in the same year - which will require farmers to make significant changes.

The Climate Atlas map of very hot days shows large increases in heat coming to many of Canada's agricultural regions, including the Okanagan Valley, the Prairies, southern Ontario, and the Maritimes.

Roy McLaren has a long lifetime of farming experience - he's farmed in southern Manitoba for over 70 years - and looks at these projections with concern. "That is pretty bad," he says. "With that kind of heat," McLaren concedes, "we'd have to change our farming methods. We'd have to adopt new crops."

Temperature changes don't just affect crops. Hot temperatures also reduce weight gain and milk production in cattle. Heat can even be deadly: in 2002, for example, heat waves in Quebec killed half a million poultry, despite the use of modern shelter and ventilation systems [1], and during 2010-2012 hundreds of dairy cattle died in Ontario because of extreme heat [2].

Farming and changes in precipitation

Water supply and water management are fundamental to farming. McLaren is plain-spoken on the topic: "Without water, you don't have anything. I don't care where you farm."

Climate models show that Canada's agricultural regions will likely see drier summers from coast to coast, but increased winter and spring precipitation. This means that farmers may have to deal with both too much water during the seeding season and too little water during the growing season, all in the same year. Projections also show that although much of southern Canada will be drier overall in the summer, it could also face an increase in short-lived but very intense rainfall events.

The projected change in monthly precipitation for April and August (for the "high carbon" climate scenario) shows that much of southern Canada is expected to become much wetter during the spring, but drier during the summer. These maps show the percent difference in total monthly precipitation between the 2051-2080 and 1976-2005 time periods.

Canada's prairie provinces have recently experienced the consequences of such seasonal shifts in precipitation: in 2016 a hot, dry spring caused widespread drought. This extended dry weather was followed by torrential rains in the late summer that caused flooding in many areas, from northern Alberta to eastern Manitoba. And in 2017, southern Saskatchewan experienced the driest July in over 130 years of record-keeping. For farmers in the region the heat and dryness was especially damaging because it followed a rainy spring that had been so wet that they'd been unable to properly seed their fields [3].

In addition to the increased threat of drought and flooding, wet springs and autumns may make it challenging for farmers to take advantage of the longer growing season promised by rising temperatures. Early or late rain can simply make the land too wet to support farm machinery, and can hinder important seeding, maturing, or drying phases of many crops.

Adaptation

Farmers are used to planning for uncertainty, but climate change is bringing new extremes, seasonal shifts, and increased variability that are likely to push the boundaries of our climate beyond anything they are used to managing.

Some aspects of climate change look promising for farming: longer frost-free seasons, increases in growing degree days, and even increased atmospheric CO2 can, in theory, lead to better crop yields and productivity. However, as Natural Resources Canada warns: "An increase in climate variability and the frequency of extreme events would adversely affect the agricultural industry. A single extreme event (later frost, extended drought, excess rainfall during harvest period) can eliminate any benefits from improved 'average' conditions" [1].

Some of the existing tools the farming sector uses to handle climate risks (such as crop insurance or sprinkler irrigation) mostly rely on poor conditions being unusual and intermittent. But short-term and one-off crisis management strategies aren't sustainable responses to the enduring effects of climate change.

The Food and Agriculture Organization of the United Nations cites research that identifies six major classes of agricultural climate adaptation [4]:

seasonal changes and sowing dates;

different varieties or species;

water supply and irrigation systems;

inputs (fertilizer, tillage methods, grain drying, other field operations);

new crop varieties; and

fire risk management.

Tunnicliffe reflects on her farm's adaptation to climate change and notes that "our strategy now is just being more resilient." She is experimenting with new varieties of produce, over-planting in expectation of higher losses, and breeding plants that are adapted to local conditions. "Your best strategy is diversity" she says, so that "a crop failure isn't a disaster." Asked to define resilience, she laughs and says "many layers of backup!"

Mitigation

Agriculture has an important part to play in reducing the severity of climate change.

Modern agriculture - like most modern industry - relies on high-carbon energy. Farming generates about 8% of Canada's greenhouse gas emissions [5]. These greenhouse gases come from a variety of sources. Diesel- and gas-powered machinery is used to till fields, plant seeds, apply fertilizers, harvest crops and transport the food to market. Manufacturing nitrogen fertilizer uses large quantities of natural gas, and when this fertilizer is applied to fields it produces nitrous oxide, a greenhouse gas that is 300 times more potent than carbon dioxide. Industrial-scale livestock operations can release large volumes of both nitrogen and methane (another powerful greenhouse gas).

The agricultural sector has begun to look at inventive ways to reduce these emissions and to pursue land-use practices that can help mitigate climate change. Strategies range widely, and include different crop cultivation and rotation strategies, using conservation tillage, transitioning to lower-carbon fuel sources, improving fertilizers and fertilizer application approaches, improving soil carbon sequestration, and using gas-capture systems for livestock and manure. There are many opportunities in this sector for technical innovation that can help ensure both climate mitigation and economic benefits.

Of course, the agricultural sector cannot singlehandedly mitigate climate change. Mitigation is ultimately a society-wide problem, and climate solutions and possibilities developed in any one sector will benefit everyone.

The vulnerability of farming to climate change could threaten food security for millions upon millions of people [6]. This essential yet threatened sector means that agricultural producers have a unique opportunity to demonstrate climate leadership. Agricultural adaptation and mitigation are necessary to create a sustainable future for Canada's farms, and the rest of society has a fundamental role to play in supporting the development of the resilient agricultural systems so necessary to us all.

References

1. Natural Resources Canada. From Impacts to Adaptation: Canada in a Changing Climate 2008

2. Bishop-Williams , Katherine E. Et al. "Heat stress related dairy cow mortality during heat waves and control periods in rural Southern Ontario from 2010-2012." BMC Veterinary Research (2015) 11:291. Accessed online.

3. CBC News. "Sask. farmers say drought conditions worst in decades".

4. Food and Agriculture Organization of the United Nations. Adaptation to climate change in agriculture, forestry and fisheries: Perspective, framework and priorities.

5. Environment and Climate Change Canada. "Greenhouse gas emissions by Canadian economic sectorGreenhouse gas sources and sinks"

6. Porter, J.R., L. Xie, A.J. Challinor, K. Cochrane, S.M. Howden, M.M. Iqbal, D.B. Lobell, and M.I. Travasso, 2014: Food security and food production systems. In: Climate Change 2014: Impacts, Adaptation, and Vulnerability. Part A: Global and Sectoral Aspects. Contribution of Working Group II to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change. Accessed online.

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Agriculture and Climate Change | Climate Atlas of Canada

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Tunnicliffe began to notice that the changing climate was throwing reliable, longstanding patterns and expectations out the window. She notes that unpredictable seasonal weather now means "the map has been wiped clean a little bit," and says: "I mentor a lot of new growers.

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Supply is an important part of the economy. We will look into how supply varies according to both price and non-price determinants of supply. Supply is an important part of the economy and as such it is important to understand the factors that impact the quantity of supply.  Changes in the determinants of supply have been examined pertaining to the Canadian farming and housing industry. Here you will find useful websites, videos and images that will help guide you in better understanding the determinants of supply.