how does increase in fuel price affect the price of vegetables, fruits and grains? give two examples. please give simple answer
Answers
Answer:
Vehicles and transportation needs fuel,as a result, transporters need more money for fuel. Therefore,they charge more money for transportation on local retailers,as a result,prices of vegetables,fruits and grains increases
Answer: The increase in the price of fuel increases the price of vegetables, fruits and grains.
Explanation:
• Vegetables, fruits and grains are grown in states where sufficient conditions to grow the particular vegetables, fruits and grains are available.
• On the other hand, vegetables, fruits and grains are needed all over the country, so they have to be transported from one part of the country to the other. Vegetables, fruits and grains are transported from places where they are grown to places where they are not.
• Increase in the price of fuel automatically increases the price of transportation of these vegetables, fruits and grains. This increase in price of transportation is faced by vendors and people who sell these vegetables, fruits and grains.
• These vendors now have to increase the price of their vegetables, fruits and grains so that it covers the cost of transportation and they don't incur losses. The increased price is thus paid by consumers.