A potato farmer is operating in a perfectly competitive market. The current market rate for each kilogram of potato at ₹40. He currently produces 1000 kilograms of potatoes and sells the entire produce within a day. The cost of producing an additional kilogram would be ₹30, and this cost will increase as he produces more and more potatoes (because he will have to start planting on less fertile land, which is more costly). Which of the following actions should he take?He should hoard his potatoes to reduce the supply in the market.He should reduce the amount of potatoes he produces to reduce costs.He should increase the amount of potatoes he produces despite increasing costs.He should charge ₹30 per kilo.

Which of the following scenarios would likely shift the supply curve for potatoes to the right (increase in supply)?multiple choiceTeenagers in potato-farming towns leave to go to college.The price of fertilizer increases.Potato growers expect the price of potatoes to be lower this year than last year.A new harvester enables farmers to bring in ripe potatoes twice as fast as they did before.

Select the correct answerA trader buys 800 kgs of tomatoes for Rs 7200. 10% tomatoes are damaged in transportation. At what rate (Rs/Kg) should he sell the rest to earn 30% profit?Options9121013

he price-support strategy exacerbated which of the following problems?Multiple choice question.The presence of too many farmers in the marketThe inability of consumers to afford agricultural productsThe hazardous conditions faced by agricultural workersThe low prices farmers received for their output

The market demand and supply functions for potatoes are:QD = 2,000 - 500P and QS = 800 + 100P.To help potato producers, the government is considering legislation that would put a pricefloor at R2.25 per bag. If this price floor is implemented, determine (i) how many bags ofpotatoes will the government be forced to buy to keep the price at R2.25; (ii) how muchgovernment will spend in total; and (iii) how much producer- and consumer -surplus changes

Consider the perfectly competitive market for potatoes with demand given by P = 30–2Q and supply given by P = 10 + 2Q. The government is considering implementing a per unit subsidy $8 (paid to farmers). What is the incidence of this subsidy? Group of answer choicesThe incidence of this subsidy to buyers is $2 and to sellers is $6.The incidence of this subsidy to buyers is $3 and to sellers is $5.The incidence of this subsidy to buyers is $0 and to sellers is $8.The incidence of this subsidy is equally distributed between the buyers and the sellers.None of the other answers are correct