Microeconomic Analysis of hike in Onion prices

Microeconomic Analysis of rise in Onion prices

Onion prices rise in Aug 2013wholesale prices shot to of Rs. 5,500 per quintal against the normal rate of Rs. 1,500 per quintal.Television channels and other media hyped the 100 rupees per kg fear which prompted consumers to buy more and advance purchases.Nashiks major markets of Pimpalgaon and Lasalgaon where rates are threatening to breach the Rs 5,000 a quintal mark.

Elasticity of Demand Curve

For Onion,Ep