Wants evolve with rising incomes, technological progress and changing lifestyles. This forces producers to innovate and supply newer products. All wants cannot be satisfied because productive resources are limited while desires remain infinite.
Discussion Forum Latest Questions
No single individual or authority decides vegetable prices in the market. Instead, prices are determined collectively by the free interaction between overall consumer demand and the total available supply brought by local vendors and farmers.
No single individual or authority decides vegetable prices in the market. Instead, prices are determined collectively by the free interaction between overall consumer demand and the total available supply brought by local vendors and farmers.
The correct choice is (b) Opportunity cost. Selecting one option requires giving up the benefit of the other alternative, which precisely defines opportunity cost when managing limited financial resources against competing desires.
Price controls are implemented on life-saving medicines, hand sanitisers, basic food grains and agricultural minimum support prices. Governments cap prices to prevent hoarding and exploitation, while price floors protect farmers from incurring losses.