Inference

Tomato
The base price of Tomato is Rs.60 per kg . With the price of 60 the market demand is 27 and 34
for the year 2019 and 2020 and the total revenue is Rs.2040. When the price is decreased by
17% and 42 % we can observe that the total revenue is Rs.1750 and Rs.1505. And when the
price increases to 17 % and 50% the total revenue is Rs.1960 and Rs. 1890. Here, only when the
price increases to 70 the product is elastic which means that the small change in price has
brought a big change in demand. Hence in this case only when the base price is kept constant the
total revenue of the product is high.

Maida
A survey was conducted between health conscious and non health conscious individuals was .It
is observed that demand for health conscious individuals is always low. In all the cases
irrespective of the price increase and decrease the market demand for the year 2020 is high for
maida because consumers opt for it more during the covid situation . Consumers have started
making cakes and other snacks items which uses maida as their main ingredient hence
irrespective of the price increase the demand is more. Hence the product is inelastic no matter
what the price change is. In this product as the price increases the income elasticity also
increases . Therefore the suppliers can go for a price increase of Rs.60 where the total revenue is
Rs. 2040.

Milkpowder
The base price of milk powder is kept as Rs.200 for half kg . When the price is decreases by 5%
and 10 % the total revenue is Rs.5890 and Rs.1254 and when it increases to 10 % and 20% the
revenue comes down . Thus we can conclude that a small change in price has brought a big
change in demand. Hence the product is elastic. The company can go for a price increase of 10
%.

Almonds
Individuals with low income opt for less quantity of almond . The base price of almonds is
Rs.900 per kg. If the price decreases with Rs.800 and Rs.500 the market demand for the year
2020 is the same 33. Whereas when price falls the market demand also falls, only price margin is
increased by 33 %. Thus it is elastic which results that this change has showed a great impact on
the demand . As the price increases the income elasticity also increases. Thus the suppliers can
go for a price increase of 22% which brings a total revenue of Rs.1100.
Amul Paneer
The data shows the price of amul paneer of 500 grams per pack. When the market demand
for the year 2020 increases the demand decreases and if there is price increase the demand
decreases. The total revenue increases only if the price falls down to Rs.75. The company can go
for price decrease of 75 to get a good revenue. Only when the price is 100 the product is elastic
which means a small change in price has shown large change in demand.

Cross Product
When the price of cross falls down to Rs.70 the quantity of the actual product decreases to 26.
Whereas if the cross product price increases the actual product demand increases .This shows an
inverse relation. The product is elastic when the price of cross increases to 140. It is calculated
by percentage change in actual product by the change in the cross product. Therefore the
demand is high when the cross product is at Rs. 60.