Training Economic Impacts Through the Commodity Price/Quantity Structure

01/09/1975

Training Economic Impacts Through the Commodity Price/Quantity Structure

Mathur P N and Shah Tushar

Working Papers

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A new framework has been developed for analysing the sectoral price behaviour. A detailed theoretical exposition of the hypothesis regarding fix and flex price systems is given in first para of the paper. IN a nutshell, fix price industries and those industries where process respond mainly to changes in demand. In the second part of the paper, this hypothesis has been tested for the Indian economy by using a twenty sectoral model. It was found that only two sectors namely agriculture and agro-products fell in flex price system. All other sectors qualified to be admitted to fix price category.

IIMA