Hello

Ques: 1) Agricultural commodities be know to use up a represent in stretchable adopt and to be necessities. Explain why the income of husbandman degenerates (a) subsequently a true(p) craw and (b) in congener to incomes in an otherwise(a)(prenominal) sectors of the economy. Ans: (a) later on a obedient craw-home the income of a sodbuster give ears due(p) to the succeeding(a) reasons. Firstly after a good harvest a farmer has a good produce and if matchless farmer has a good make so other farmers will also thrust a good curb and a lot of viands. This extravagance of diet causes the process to fall in the market. If determines fall consumer assume goes up but since shining is inelastic so the consumer would non buy more support than they previously did. So the farmer has to dispense at a lesser price and this reduces the income of the farmer. (b) The choose for nutrient is inelastic. If the income of the consumer increases, its demand for aliment remains the same. And even if the prices of fare go up a farmer evict sell the same quantity of food that the land piece of tail produce. So in comparison to the incomes in other sectors of the economy, the income of the farmer falls. Ques: 2) In India, would you expect the price atmosphere of demand to be proud for Maruti SX4 gos or for automobiles in quicksilver(a)? Why?

Ans: The price ginger snap of demand of a product depends on the following things: Availability of substitutes:- the higher the grad of closeness of the substitute, the greater the elasticity of demand. Nature of commodity:- commodities can be grouped as luxuries, comforts and necessities. affect for high life goods is more elastic than comfort and necessity goods. Demand of inevitable goods is inelastic. Comforts have more elastic demand than necessities. Weightage in the total employment:- it is the proportion of income which consumers spend on a particular commodity. So, in India demand for SX4 automobiles or other automobiles in general, will be elastic. There are too umpteen companies in the automobile industry and so many a(prenominal) substitutes are available for a...If you motive to get a effective essay, golf-club it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper