(a)
1. The supply of land is fixed as neither land can be stretched nor anything can be added to it to increase its availability.
2. Land is used for alternative purposes like cultivation, dairy or poultry farms, f sheep rearing, building etc. The use of land for any particular purpose depends not only on the return from that particular use, but also its returns from alternative uses.
(b) If the percentage change in demand is proportional to percentage change in price, the elasticity is said to be unity. If the percentage change in demand is more than the percentage change in price, the elasticity is more than one, and if the percentage change in demand is less than percentage change in price, the elasticity of demand is less than unity. Mathematically,
Elasticity of demand
= percentage changes in demand /percentage change in price
(c) Two differences are:
| 1. Labour services of a surgeon is highly paid as it is a skilled labour. |
Labour services of a farmer are lowly paid as it is an unskilled labour. |
| 2. It requires specialized studies and training. |
It does not require any specialised studies and training. |
(d) The two reasons for consumers, exploitation in India are:
1. Most of the consumers are not aware of their legitimate rights.
2. The consumers are not properly organised to raise their voice against such exploitation.
(e) Suppose a person possess rice and wants to exchange it for wheat. Under the barter system he had to find out a person who not only had wheat but also wants rice. But such a double coincidence was a rare-possibility. But With the use of money all the commodities can be easily exchanged and you do not need double coincidence of wants.
