1. Assume that the Indian Jute Industry is at present in a equilibrium state with the producers supplying jute bags only to the domestic market at the prevailing market prices. Apart from domestic suppliers, Indian jute industry faces competition from Bangladesh. Explain with the help of supply-demand curves how the following events affect the equilibrium in the jute industry? a. Poor domestic demand b. Increased competition from Bangladesh c. Cement industry, which is one of the largest users of jute bags,
1. Assume that the Indian Jute Industry is at present in a equilibrium state with the producers supplying jute bags only to the domestic market at the prevailing market prices. Apart from domestic suppliers, Indian jute industry faces competition from Bangladesh. Explain with the help of supply-demand curves how the following events affect the equilibrium in the jute industry? a. Poor domestic demand b. Increased competition from Bangladesh c. Cement industry, which is one of the largest users of jute bags,
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
Problem 11PA
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Question
Explain with the help of diagrams:
1. Assume that the Indian Jute
Industry is at present in a equilibrium state with the producers supplying
jute bags only to the domestic market at
the prevailing market prices. Apart from domestic suppliers, Indian jute
industry faces competition from Bangladesh. Explain with the help of
jute industry?
a. Poor domestic demand
b. Increased
competition from Bangladesh
c. Cement industry,
which is one of the largest users of jute bags,
exempted from mandatory jute packaging
d. Farmers, instead of
producing jute, use their farm lands for some other purposes.
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