Reference no: EM132631355

Q.1 What factors affected the supply of onions during the period of december 2010 to january 2011?

Q.2 What factors had affected the demand for onions? which of these are long-run or structural in nature and which are short-run ?

Q.3 Were speculative activities affecting demand for or supply of onions?

Q.4 Consumers adjusted their demand for onions due to substantial increase in the price of onions. Many households that had been using two onions a day reduced their consumption to one. Can this adjustment be described as a movement along the demand curve or a shift in the demand curve?

Q.5 What type of market structure do the participants in the onion face? justify your answer?

Q.6 What type of imperfections are observed in the onion market in India?

Q.7 Why did the government intervene in the onion market when onion prices registered a sharp rise?

Q.8 In January 2011,the government intervened in the onion market bring prices down to RS 35. Was this an attempt to enforce a price ceiling or a price floor? how did it clear the market?

Q.9 Who pays the price for the government's interventions in the onion market?

Q.10 Should the government continue to subsidize onion prices in the event of a large supply shortage or should it incur large investment expenditures to construct scientific cold storage facilities to provide long-run stability in onion prices?

Q.11 In your opinion, what are the most critical factors that would justify the decision to expand infrastructure for onion storage?

Q.12 Who will benefit the most from the scrapping of the minimum export price for onions?

Q.13 In your view what is needed to bring in stability in the onion market and better income for the farmers and traders?