A. Calculate shortages or surpluses that occur in rice industry when government sets price equals to Rs. 700 per bag of rice.
B. Calculate price elasticity of demand and price elasticity of supply when government decreases price of rice from Rs. 800 to Rs. 700.
C. Analyze whether the above government action in the form of setting price equals to Rs.700 per bag is proved to be successful to stable the domestic rice market or not. Give answer by only considering the values calculated in part B.
D. How cereal industry of Thailand will be affected if Government is successful in overcoming hoarding of rice. Graphically analyze. (Only 4 D)
A. Calculate shortages or surpluses that occur in rice industry when government sets price equals to Rs. 700 per bag of rice.
There will be a shortage of rice with 28000 Qtd. Ultimate effect pr...
B. Calculate price elasticity of demand and price elasticity of supply when government decreases price of rice from Rs. 800 to Rs. 700.
P Ed = dQ/dP * P/Q
= -2000/-100 * 800/75000
= 0.21
P Es = dQ/dP * P/Q
= -11000/-100 * 800/60000
= 1.47
C. Analyze whether the above government action in the form of setting price equals to Rs.700 per bag is proved to be successful to stable the domestic rice market or not. Give answer by only considering the values calculated in part B.
Answer:
If PED = 0.21: If the PED is less than one, the good is inelastic. ...
If PES = 1.47: When PES is grater than 1 then supply is price elastic...
D. How cereal industry of Thailand will be affected if Government is successful in overcoming hoarding of rice. Graphically analyze.
Bohat easy hai. Yeh ap ko khud banana chiaye. Practice ho gi.
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