How can price fluctuation affect a farmer?
Answer and explanation
Correct answer: The farmer’s income and profit may become uncertain
When market prices of crops rise and fall, a farmer cannot accurately predict the income earned from selling the produce. A fall in price may make it difficult to recover production costs, while a higher price may increase profit. Price fluctuation does not make production costs stable. Exam tip: link price fluctuation with farm income uncertainty and market risk.
Frequently asked questions
What is the correct answer to this question?
The farmer’s income and profit may become uncertain
Why is this the correct answer?
When market prices of crops rise and fall, a farmer cannot accurately predict the income earned from selling the produce. A fall in price may make it difficult to recover production costs, while a higher price may increase profit. Price fluctuation does not make production costs stable. Exam tip: link price fluctuation with farm income uncertainty and market risk.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Traditional occupations in India - Agriculture.
