Production cost: This is the amount of money used to produce the item. In the case of food, the production cost will include the money spent on cleaning the land, sowing the seeds, harvesting and processing. The final cost of a product is determined by this amount plus others like transportation cost, profit and handling charges.
The season: Seasonal differences in the cost of food occur. Food items always cost less when they are in season because they are plenty and so the supply becomes high. When market supply of a commodity becomes high the price of the commodity falls. Food items that are out of season become scarce and therefore their prices are higher.
Demand for item: Usually when many people want a certain item, its price increases.
Advertisements: These are ways in which manufacturers and sellers tell us they have certain goods and services for sale. Advertisements cost money. The cost of advertising a product is added to the production cost to make up the price of a product. The more the advertisement the higher the cost of the product.
Amount of processing: Processing adds value to products and it costs money. Foods that are processed to provide conveniences cost more than unprocessed ones.
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