As the supply of tomatoes increases in your local mandi, its price drops. When the local harvest starts reaching the market, the price of tomatoes drops from Rs. 40 per kg to Rs 4 per kg or even less. Is there any relationship between two variables?

Asked by Last Modified  

Follow 5
Answer

Please enter your answer

Tutor

The fall in price of tomatoes when the local harvest starts reaching the market is due to following two readons: 1. When supply is in much excess of demand , as per basic theory of economics the price of commodity, here tomatoes , falls. 2. Tomatoes are perishable. They can't be preserved for longer...
read more
The fall in price of tomatoes when the local harvest starts reaching the market is due to following two readons: 1. When supply is in much excess of demand , as per basic theory of economics the price of commodity, here tomatoes , falls. 2. Tomatoes are perishable. They can't be preserved for longer time by all the farmers as all of them do not have storage facility. Hence tomato growers are compelled to sell them off so price comes down. read less
Comments

Teacher

It's very simple demand and supply relationship as supply increase the price will decrease as demand remains more or less same.
Comments

Tutor

Yes there is relation between these two variables. The relation can be observed in two ways. One is Effect of price on its supply and the other is effect supply on its price. EFFECT OF PRICE ON ITS SUPPLY: Other things being contact, when price increases, the supply expands and when the price decreses,...
read more
Yes there is relation between these two variables. The relation can be observed in two ways. One is Effect of price on its supply and the other is effect supply on its price. EFFECT OF PRICE ON ITS SUPPLY: Other things being contact, when price increases, the supply expands and when the price decreses, there is contraction in supply. EFFECT OF SUPPLY ON ITS PRICE: Other things including price being constant, if Supply of a comodity increases and exceeds demand, then price declines, but when the supply decreases and defeated by demand, then price goes up due to demand being more than supply. read less
Comments

Economist

There is the negative relationship between price and supply of tomatos due to excess supply of tomatos.
Comments

Considering all other variables constant, supply and price have an inverse relationship. If you plot a graph, taking the same values that you have mentioned here, you can see it for yourself. This is again considering that the demand has remained constant and it has not changed due to additional people...
read more
Considering all other variables constant, supply and price have an inverse relationship. If you plot a graph, taking the same values that you have mentioned here, you can see it for yourself. This is again considering that the demand has remained constant and it has not changed due to additional people or unavailability of substitutes, to be clear. Hope this answers your query. read less
Comments

View 3 more Answers

Related Questions

 How does demand influence investment decisions in an economy?

Higher demand encourages businesses to invest more in production to meet customer needs. If demand is low or uncertain, firms reduce or delay investment. So, strong demand boosts confidence and drives investment in the economy.
Renu
What is the best coaching in Kota for class 11?
Allen carrier Institute is best Institute in Kota for class 11.
Sounak
0 0
7
Can I manage class 11 with entrance coaching?
You can very well manage class 11 with entrance coaching by making an in-depth study from the word go once you start your curriculum.This will ,in no way hinder the regular stream if and only if exhaustive...
Mukund
0 0
6
Which coaching institutes are best for a class 12 passout preparing for JEE in Kolkata?
You can join fitjee . I think it's very effective institute . You will be really beneficial for you. Allen is also very good. For chemistry , you can join my coaching classes. I teach chemistry in jadavpur...
Akhileshwar
0 0
5

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons


Types of Demand - Micro Economics, Class 12
Economics - NCERT, ICSE/ISC, State Board, IGCSE/GCSE

Mathematical Economics
Functions of one variable (DEMO) Reference book: Sydsaeter and Hammond Play with Graphs- Arihant Content plan for Day 1: Graphs of Functions: Special focus on trigonometric functions. All basic functions...

What is Monetary Policy Committee (MPC) ?
The new MPC is to be a six member panel that is expected to bring "VALUE and TRANSPARENCY" to rate setting decisions. It will feature three members from the RBI- the Governor, a Deputy Governor , and another...

Barter System - Drawbacks of Barter System, Class 12, NCERT, Macro Economics
Economics - CBSE Std XIIth, State Board, ICSE/ISC, IGCSE/GCSE

Recommended Articles

Appearing for exams could be stressful for students. Even though they might have prepared well, they could suffer from anxiety, tension etc. These are not good for their health and mind. However, following a few exam preparation tips can save them from all these and help them to score good marks. Let’s find out all...

Read full article >

While schools provide formal education to the children, the home is where they start learning about things informally. Parents think that schools will take the initiative to educate their children. Well, this is partially true, as parents also play an essential role in bringing up their child. For the development of particular...

Read full article >

With the mushrooming of international and private schools, it may seem that the education system of India is healthy. In reality, only 29% of children are sent to the private schools, while the remaining head for government or state funded education. So, to check the reality of Indian education system it is better to look...

Read full article >

Quality education does not only help children to get a successful career and life, but it also hugely contributes to society. The formal education of every child starts from school. Although there are numerous schools, parents find it challenging to choose the right one that would fit their child. It is difficult for them...

Read full article >

Looking for Class 11 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you