Both demand and supply of agriculture produce are inelastic."Explain throwing light on importance of agricultural marketing in India.
Hint: When the quantity bought doesn’t change as much as the price does; the demand is inelastic. Similarly, when the quantity supplied does not change as much as price does, the supply is inelastic.
The demand in agriculture produce is inelastic because food products are necessities, and demand is not dependent on price. Similarly, supply is also inelastic because the agriculture produce is perishable and the farmer who produced it has to sell it anyways even if there is a fall in price.
Due to this, a farmer is forced to sells his produce at an unfavorable place, time and price. If there is an efficient marketing system in place, the farmer is able to get appropriate return of his produce.
Both demand and supply of agriculture produce are inelastic.” Explain throwing light on importance of agricultural marketing in India.
Published: October 28, 2015 | Modified:June 27, 2019