All questions of Price Changes for Grade 9 Exam

High degree of concentration of ownership of land:
- When there is a high degree of concentration of ownership of land, a smaller number of landowners have control over the majority of agricultural land.
- This leads to a situation where these landowners have more power to dictate prices as they can restrict the supply of agricultural products.
- With limited competition, these landowners can keep prices high even if there is an increase in demand, leading to a rise in prices.
Inelasticity of supply:
- Inelastic supply means that the quantity of agricultural products supplied does not change significantly in response to changes in price.
- This is often the case in agriculture, where factors like limited land availability, long production cycles, and weather conditions can limit the ability of farmers to increase production quickly.
- As a result, when demand increases, prices tend to rise significantly due to the inability of supply to keep up.
Overall, the high degree of concentration of ownership of land exacerbates the inelasticity of supply in agriculture, leading to a rise in prices as landowners have the power to control supply and keep prices high even with increased demand.

Cost-push inflation occurs when prices, particularly in the public sector, are frequently raised by the government to cover losses, leading to an increase in overall price levels.

The last stage of inflation, characterized by an extremely high speed of the general rise in the price level, is known as hyperinflation. This stage can lead to the collapse of the monetary and financial structure.

Inflation negatively impacts long-term savings and disproportionately affects wage earners as their wages may not rise in tandem with rising prices, leading to a decline in real income.

The initial stage of inflation, characterized by a slow rate of price rise, is referred to as crawling or creeping inflation. This phase is considered manageable, especially when emerging after a period of depression.

An increase in the supply of money, especially when it outpaces the growth of transactions, can lead to inflation. In India, the continuous increase in the money supply has proven to be inflationary.

Inflation characterized by acceleration in the rate of inflation over time and high unemployment is termed as stagflation and slumpfation. This phenomenon poses a serious challenge to the economy.

Restricting the supply of money is suggested as a remedy to stabilize the general price level in underdeveloped countries like India. Controlling money supply can help manage aggregate demand and curb inflation.

Economic planning in India primarily aims at price stability. Stable prices are considered essential for economic growth and the well-being of the population. Fluctuating prices can create uncertainty, influence income distribution, and disrupt production and investment planning.

A persistent rise in the general level of prices is known as inflation. It is measured as a percentage over a specific unit of time, such as a year or a month.