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Class 12 Economics Question Paper Solved (2023) - 6 | Economics Class 12 - Commerce PDF Download

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FAQs on Class 12 Economics Question Paper Solved (2023) - 6 - Economics Class 12 - Commerce

1. What are the factors affecting the demand for agricultural products?
Ans. Factors affecting the demand for agricultural products include population growth, income levels, consumer preferences, government policies, and the prices of substitutes.
2. How does the elasticity of demand impact the pricing of agricultural products?
Ans. The elasticity of demand for agricultural products determines how sensitive consumers are to price changes. If demand is inelastic, producers can increase prices without a significant drop in demand. If demand is elastic, producers must be more cautious about price increases.
3. What role do international trade agreements play in the agricultural sector?
Ans. International trade agreements can impact the agricultural sector by opening up new markets for agricultural products, reducing tariffs and trade barriers, and increasing competition. These agreements can also lead to changes in production practices and prices.
4. How do government subsidies affect the agricultural industry?
Ans. Government subsidies can have a significant impact on the agricultural industry by providing financial support to farmers, influencing production decisions, and affecting prices. Subsidies can also help farmers manage risks and maintain stability in the market.
5. What are the challenges faced by small-scale farmers in the agricultural sector?
Ans. Small-scale farmers face challenges such as limited access to resources and technology, market volatility, competition from large-scale producers, and climate change. These challenges can impact their profitability and sustainability in the long run.
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