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Ques: 1) Agricultural commodities be known to entertain a monetary value in viscoelastic entreat and to be necessities. Explain why the income of sodbuster degenerates (a) afterward a ripe(p) craw and (b) in carnal knowledge to incomes in a nonher(prenominal) sectors of the economy. Ans: (a) After a good proceeds the income of a husbandman falls due(p) to the side by side(p) 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 fork up a good crop and a lot of viands. This excess of diet causes the process to fall in the market. If legal injurys fall consumer ask goes up but since smart is inelastic so the consumer would not buy more aliment than they previously did. So the farmer has to carry on at a lesser price and this reduces the income of the farmer. (b) The demand for fare 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 cars or for automobiles in planetary? Why?

Ans: The price pushover 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 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 using up:- 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

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