One of the following pieces of advice has/have been given by leading economists to finance minister during their pre-budget meeting with ?
(a) to take measures to boost farm productivity only
(b) to improve supply of agricultural products only
(c) to reduce the ﬁscal deﬁcit only
4) all (a), (b) and (c)
5) only (a) and (b)
5. Only A and B
Elasticity of supply is influenced by levels of stocks, excess capacity, ease of entry to the industry, mobility of factors, the length of the production process and the time period involved. Agricultural goods are more inelastic in supply mainly because it is perishable.
It is influenced by level of stock