Why is it important to understand the difference between local and distant markets in agriculture?
Answer and explanation
Correct answer: To assess crop price, transport cost and demand
Crop selling price, buyer demand, and transport and storage costs may differ between local and distant markets. A farmer must compare these factors to choose the market that gives better profit. A higher price in a distant market alone is not enough, because higher transport costs may reduce the net return. Exam tip: link market selection with the net income from the crop.
Frequently asked questions
What is the correct answer to this question?
To assess crop price, transport cost and demand
Why is this the correct answer?
Crop selling price, buyer demand, and transport and storage costs may differ between local and distant markets. A farmer must compare these factors to choose the market that gives better profit. A higher price in a distant market alone is not enough, because higher transport costs may reduce the net return. Exam tip: link market selection with the net income from the crop.
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.
