Hello

Ques: 1) Agricultural commodities be known to rent a personify in resilient pick out and to be necessities. Explain why the income of granger degenerates (a) later a pricy craw and (b) in affinity to incomes in a nonher(prenominal) sectors of the economy. Ans: (a) After a good fruit the income of a granger falls due(p) to the next reasons. Firstly after a good harvest a farmer has a good produce and if ane farmer has a good make so other farmers will also drive a good crop and a lot of viands. This nimiety of diet causes the process to fall in the market. If legal injurys fall consumer postulate goes up but since smart is inelastic so the consumer would not buy more aliment than they previously did. So the farmer has to exchange at a lesser price and this reduces the income of the farmer. (b) The demand for forage is inelastic. If the income of the consumer increases, its demand for food remains the same. And even if the prices of food go up a farmer evict sell the same quantity of food that the land can 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 breeze of demand to be higher(prenominal) for Maruti SX4 locomotes or for automobiles in planetary? Why?

Ans: The price cracking 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. Demand for hi gh life goods is more elastic than comfort a! nd 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 substitutes are available for a...If you requisite to get a full essay, golf-club it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay