This report examines the three fundamental economic problems of scarcity, choice, and opportunity cost and their impact on the basmati rice market in India. It analyzes consumer behavior, applying demand and supply principles to understand market dynamics. The report includes an analysis of the law of demand, factors affecting demand, and price elasticity of demand for basmati rice. It further explores the behavior of businesses in producing basmati rice, considering opportunity cost and comparative advantage. The report also discusses the law of supply and factors influencing the supply of basmati rice, concluding with an analysis of price elasticity of supply. The report uses hypothetical data and examples to illustrate the application of economic concepts to the real-world context of the Indian basmati rice market, offering insights into consumer and business decision-making processes.
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