Re: jnu doubts

Posted by Akshay Jain on May 17, 2013; 5:44am
URL: http://discussion-forum.276.s1.nabble.com/jnu-doubts-tp7580858p7580868.html

gdp growth is 7% and population growth is 2 % den approximate gdp per capita growth is 5% (7-2)
also given dat 1% income increase is associated vd .4% increase in food demand
so 5% increase in income increases demand for food by 5*.4%=2%.
this means dat demand curve for food shifts rightward by 2% so supply must also shift rightward by 2% to keep prices constant.