eChapters

Supply

Supply refers to the good being sold at a specific price and moment.

Supply is the quantity of a commodity that is actually made available for purchase at a specific price and moment. The various quantities of a commodity that would be available for sale at varying prices are referred to as the supply schedule.

Supply schedule of Rice The supply schedule for the whole market is called market supply. It is arrived at by adding the quantities supplied by all the sellers at varying prices. The increasing portion of the marginal cost curve is used to create

Theory of Costs

In both short-run and long-run analyses, there exist different cost curves.

Short run is the duration of a given factor or factors. Equipment and business owners are typically fxed in the near term

Long run is the period over which all factors become variable.

Fixed costs: are those expenses that remain constant regardless of output or production levels.. Eg: depreciation, annual maintenance cost etc.

Variable cost: are those expenses that change depending on the volume of output eg : inputs/raw material costs, wages etc.

Short Run Cost Curves

There are seven cost concepts or curves in short run analysis. They are :

1. Total cost (TC)
2. Total Fixed cost (TFC)

According to the theory of production, the entrepreneur seeks to maximise his earnings. The goal of a proft-maximizing businessperson is to maximise production for a given amount of investment, or, to put it another way, to reduce expense.

Meaning of Production

Producing items and services with a market value is referred to as production in economics. It refers to the development of utilities. These services fall under the categories of form, time, and place utilities. The establishment of such utilities boosts the economy’s total production and redistribution of commodities and services. A commodity’s utility could rise for a variety of reasons.

Form Utility

If the physical form of a commodity is changed, its utility may increase. For instance, the utility of cotton increases, if it is converted into clothes. The other examples are processing of paddy into rice, wheat into four and butter into ghee.

Marshall was the frst to establish the idea of elasticity. According to the law of demand, if the price increases, fewer units will be sought for. But it’s crucial to know how much less will be expected of it. Such inquiries are crucial when formulating public policy. For instance: A price rise for salt might not have much of an effect on demand, but a price increase for TV will have more of an effect. Why? The idea of elasticity provides an answer to such queries. In economics, the concept of “elasticity” is frequently used to describe how responsive one variable is to changes in another.:

Elasticity of demand

Demand elasticity generally refers to demand’s sensitivity to price. However, there are as many levels of elasticity as there are demand determinants. The most important Elasticities are:

Determinants of demand Elasticity

Demand: Wants that are supported by a price at which they can be purchased are called demand. It is a relationship that, ceteris paribus, depicts the various quantities of a good that buyers would be able and willing to buy at various prices at a particular point in time.

Demand Schedule: It is a table that displays different quantities of a good that consumers would be willing and able to buy at different prices at a specific moment, ceterius paribus.

Demand curve: A demand schedule is a graph that displays the various quantities of a good that buyers would be able and willing to buy at various prices at a specific point in time, according to Ceterius peribus. It in turn fuels growth by increasing demand for industrial goods..

The arc slopes left to right in a descending direction.

Agriculture economics is the study of how resources are used, distributed, and utilised in order to create agricultural products. A consistent level of farm surplus is one of the sources of technological and commercial expansion, so agricultural economics has an impact on the economics of development.

In general, it may be said that average salaries are low when a sizable portion of a nation’s population depends on agriculture for a living. It is more accurate to argue that a country’s majority of people must rely on agriculture because it is impoverished rather than that a country is poor because the majority of its population works in agriculture.

Features of Agriculture

Agriculture is the principal industry of employment. Nearly 61 percent of the whole population is employed there. It makes up 25% of the country’s income.

Monsoon dependence: The monsoon is crucial to Indian agriculture. The production will increase if the monsoon is good, and the crops will fail if it is below normal. Floods can occasionally ruin our crops. Agriculture depends on the rainfall since irrigation systems are so poor.

Goods can be classified as follows

1. Free goods: Goods which are not scarce and available at free of cost are called free goods. Eg: air.
2. Economic goods: Economic goods are scarce and one has to pay a price for it : eg: Rice, pen, cloth etc.
3. Visible and Invisible goods: Things which can be seen and felt can be called as visible goods. Such goods are also called as tangible good. Eg. Rice, bicycle.

   Invisible goods are also called as services or intangible goods. We cannot see or feel those goods. Eg. Copyright of a book, service of a doctor.

4. Consumer goods and capital goods (Producer goods): Consumer goods satisfy our wants directly. Eg. Rice, Pen, etc.

   Goods like machinery, equipments will not satisfy our want directly but used for further production

Economics and Reasonability

The four primary economic activities of production, distribution, consumption, and resource management are what we referred to as economic actors or economic agents in Chapter 1. Individuals, small groupings (such as a family or a group of roommates), as well as big businesses like the government or international corporations, can all engage as economic agents. Economics is the study of these actors’ actions and interactions during economic transactions. This chapter examines how people behave as independent economic players. We analyse this subject’s ramifications for economic theory and examine both historical and recent research on it.

Perspectives from History on Economic Behavior

A social science, economics is concerned with people and how we arrange ourselves to meet our wants and improve our well-being. All economic behaviour is ultimately just human behaviour. Even though institutional factors can sometimes appear to gain control (as evidenced by some bureaucracies’ propensity to grow over time), if you look closely at economic outcomes

Agricultural Economics is an applied discipline that examines the economics of agricultural commodity production, marketing, exchange, and consumption in the economy. It largely focuses on how a society decides to use its limited resources, which have alternative uses, to produce things for both current and future consumption. Due to this shortage, people are forced to choose between options, and economic knowledge is utilised to compare the options and select the best one. For example, a farmer can grow paddy, sugarcane, banana, cotton etc. in his garden land. But he has to choose a combination of crops depending upon the availability of labour and irrigation water.

The emergence of economic problems is caused by two key reasons.. They are: (i) the existence of unlimited human wants and (ii) the scarcity of available resources. The existence of human wants is the starting point of all economic activity in the world. Unless we make efforts, we cannot satisfy wants. Hence, wants, efforts and satisfaction form the circle of economics. Thus, the science of economics focuses around want - effort - satisfaction.

1.1. Origin and distribution

• Originated in Peru, Ecuador, Bolvia of South America and name came from Aztec word Tomato.
• First report from Italy in 1544.
• Leading producers in India - UP, Karnataka, Maharashtra, Haryana, Punjab and Bihar.

1.2. Economic importance

• Rich source of minerals like calcium, sodium, trace elements like copper, vitamin A, vitamin C, vitamin B complex (thiamine), essential amino acids and healthy organic acids like malic, citric, formic, oxalic and acetic acids.
• Attractive red colour due to lycopene and yellow colour due to carotenes.
• Peculiar flavour due to presence of ethanol, acetaldehyde and volatile flavour in fruit.

1.1. Terms and definitions

1.1.1. Landscape gardening

• Branch of floriculture deals with the study of ornamental gardening or garden features.
• Bringing an area or piece of land into a garden using naturally existing features like undulations, terraces and plain surface to have more naturalistic effect than artificial.

1.1.2. Ornamental gardening

• Place for growing plants which are consciously directed for ornamental or practical use.

1.1. Origin and distribution

• Most species are native to Asia, with smaller numbers are native to Europe, North America and North Western Africa.
• China roses are the ancestor of the present day popular roses.
• Native of Himalayan regions, Asia, China, Japan, Europe and North America.

1.2. Economic importance

• King of flowers
• Symbol of beauty, fragrance and used to convey of love.

1.1. Origin and distribution

• Centres of diversity - Central and South America, India, South East Asia with secondary centres of diversity in West and East Africa.
• Leaf amaranth - native of India
• A. tricolor L. (Syn A. gangeticus L), A. mangostanus, A. polygonoides, A. dubius, A. blitum (Syn: A. lividus)
• A. tristis L., A. viridis L. - Wild leaf types
• A. spinosus L., A. cruentus L., A. caudatus L. - Cultivated grain types

1.1. Origin and distribution

• Centre of origin is Central Asia, the Near East, Ethiopia and the Mediterranean
• There are two sub-species
  • Pisum sativum sub. sp hortense, the garden pea
  • Pisum sativum sub. sp arvense, the field pea

1.1. Origin and distribution

• Centre of origin is Peru, Bolivia, and South America in the Central Andean region.
• Introduced into India in early 17^th Century
• In India, cultivation of potato began first in Nilgiris in 1822.
• Mainly grown in Uttar Pradesh, West Bengal, Punjab, Karnataka, Assam and Madhya Pradesh.
• Commercial potato species - Solanum andigenum - not very common. Plants are thin and long stem, small and narrow leaflets. Flowers more profuse, long stolons and mostly coloured deep eyed tubers.
• Solanum tuberosum: More common, plants shorter and thicker stem,

1.1. Origin and distribution

• Originated in Asia namely North West India, Afghanistan, Tajikistan, Uzbekistan and Western Tien Shan
• According to Vavilov (1951), it was originated in Pakistan.
• Jones and Mann (1963) stated that areas comprising Pakistan, Iran and mountain areas to the North India are primary centres of origin
• India is the second largest producer in the world, next to China and ranks third in export of onions, next to Netherlands and Spain.
• Maharashtra is the leading onion producing state in India, followed by Karnataka and Gujarat.
• Grown in Odisha, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Rajasthan and Bihar

1.2. Onion types in India

• Common onion (Allium cepa var. cepa) - Large bulbs born singly and propagated through seeds. Used as salad or in curries.
• Multiplier onion or potato onion (Allium cepa var. aggregatum) -Producing small bulbs, borne in clusters and generally propagated through small bulbs. Used for seasoning curries.

1.1. Origin and distribution

• Originated from wild non heading type, Cliff cabbage or Cole wort (Brassica oleracea var. sylvestris).
• Native to Mediterranean region.
• Three cultivated forms
  • Brassica oleracea var capitata f. alba- White cabbage
  • Brassica oleracea var capitata f. rubra- Red cabbage
  • Brassica oleracea var capitata f. sabauda- Savoy cabbage
• Major cabbage producing states are Uttar Pradesh, Odisha, Bihar, Assam, West Bengal, Maharashtra and Karnataka.

1.2. Economic importance

• Contains all essential amino acids, particularly sulphur containing amino acids.
• Red cabbage is rich source of anthocyanin.

1.1. Origin and distribution

• Also known as balsam pear or bitter cucumber.
• Old world origin and native of tropical Asia, particularly in Indo Burma region
• Widely grown in India, Indonesia, Malaysia, China and tropical Africa
• In India, it is cultivated in Maharashtra, Gujarat, Punjab, Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, West Bengal, Odisha, Assam, Uttar Pradesh and Bihar.

1.2. Economic importance

• Bitter gourd contains bitter principle (Glucoside) momordicin.
• Important vegetable in South Indian states, particularly in Kerala and grown for immature tuberculate fruits a unique bitter taste
• Fruits are
  • Rich source of vitamins and minerals