a. The supply of a commodity is determined by producers or sellers who decide how much to offer based on production costs, market prices, and profitability. In Ghana, maize farmers determine supply through planting decisions influenced by input costs like fertilizers; banks like Stanbic Bank Ghana provide agricultural loans under BoG’s Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) to boost supply.

b. The price of maize should increase after a long period of dry season because drought reduces crop yields, leading to a leftward shift in the supply curve, causing scarcity and higher equilibrium prices. In Ghana, events like the 2023 dry spells impacted northern regions, raising maize prices and affecting food inflation; banks monitor this for agribusiness lending risks per BoG’s operational risk standards.

c. Six factors that may induce a producer to increase supply include:

• Higher market prices: Encouraging more production for profitability, e.g., rising cocoa prices prompting Ghanaian farmers to expand output with financing from banks.
• Lower production costs: Due to cheaper inputs like subsidized fertilizers under Ghana’s Planting for Food and Jobs program.
• Technological advancements: Such as improved seeds increasing yields, financed via bank loans aligned with BoG’s sustainable banking principles.
• Favorable weather conditions: Enhancing output without additional costs.
• Government subsidies or incentives: Like tax breaks for exporters, boosting supply in sectors like oil palm.
• Entry of new producers: Increasing overall market supply through competition, as seen in Ghana’s fintech-driven agricultural expansions post-2019 cleanup