Factors on the supply side affecting prices of the goods and services are:-
Code:
Factors on the supply side affecting prices of the goods and services are:-
Code:
The correct option is A 1 and 2 only
Statements 3 and 4 are Demand side factors that affects general price hence are incorrect. Statements 1 and 2 are supply side factors affecting general price rise and hence statements 1 and 2 are correct. Other factors in supply side are – Erratic agriculture growth, Hoarding, Inadequate Industrial production.
Agricultural Price Policy of Govt. - In order to provide incentive. Govt. announce support price commonly KIA MSP now. This also eliminates risk involved in farming. Although this policy has immensely benefitted big farmers, it has been a major cause of inflation.
Upward revision of administered prices: - There are a number of important commodities for which price level is administered by government many of these commodities are produced in public sector. The government keeps on raising administered prices from time to time in order to cover up losses in public sector which often rise due to inefficiency and unimaginative planning. This leads to price rise in general.
1 and 2 only
Statements 3 and 4 are Demand side factors that affects general price hence are incorrect. Statements 1 and 2 are supply side factors affecting general price rise and hence statements 1 and 2 are correct. Other factors in supply side are – Erratic agriculture growth, Hoarding, Inadequate Industrial production.
Agricultural Price Policy of Govt. - In order to provide incentive. Govt. announce support price commonly KIA MSP now. This also eliminates risk involved in farming. Although this policy has immensely benefitted big farmers, it has been a major cause of inflation.
Upward revision of administered prices: - There are a number of important commodities for which price level is administered by government many of these commodities are produced in public sector. The government keeps on raising administered prices from time to time in order to cover up losses in public sector which often rise due to inefficiency and unimaginative planning. This leads to price rise in general.
