how does the concept of elasticity of demand explain the paradox of poverty amidst plenty? (class 10 icse)
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A bumper crop, instead of bringing prosperity to farmers, brings poverty. This is called the paradox of poverty amidst plenty. It happens due to inelastic demand for most of the agricultural products. When supply of crops increases as a result of rich harvest, their prices drastically fall due to inelastic demand.
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