Geography, asked by sohail7138, 8 months ago

how are grain and vegetable production related to inflation

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Answered by Anonymous

WHEN THE GOVERNMENT PROCURES MORE GRAIN, THIS INCREASES THE MARK-UP THAT GRAIN PRODUCERS CHARGE OVER THEIR MARGINAL COSTS OF PRODUCTION. ... CONFRONTING HIGHER NOMINAL WAGES, VEGETABLE PRODUCERS AND MANUFACTURING FIRMS REVISE THEIR PRICES UPWARDS, LEADING TO INFLATION IN THESE SECTORS AS WELL.

Answered by gk3977948

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When the government procures moregrain, this increases the mark-up thatgrain producers charge over their marginal costs of production. ... Confronting higher nominal wages,vegetable producers andmanufacturing firms revise their prices upwards, leading to inflation in these sectors as well.

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how are grain and vegetable production related to inflation