Managerial Economics CCE – 1

Name: Samrat Singh

Roll No: M2224136 Div: F2
Article No.1
“Luxury Car Sales Growth Outpaces Broader Industry”
by Sharmistha Mukherjee, ET Bureau

On the strength of a swift economic recovery and reiterating India's credentials as

the world's fastest-growing major economy at a time when much of the West is
plagued with recessionary risks, luxury vehicle sales increased faster than the
local auto market last year, approaching the pre-pandemic peak. Mercedes Benz,
BMW, and Audi, the top three luxury car producers, all reported significant gains.
With the average age of Mer C-Class buyers in India being 35, the market for
luxury vehicles is becoming younger.
According to industry estimates, India sold between 37,000 and 38,000 luxury
cars in 2022, up around 50% from the previous year but falling short of the
record-breaking 40,000 units sold in 2018. Due to rising disposable incomes,
demand for vehicles or models in the luxury class that cost around Rs. 1 crore
increased.
In this case, we can understand that luxury goods are the status symbols. So,
when price increases, the quantity demanded also increases. It means that the
income elasticity of demand is greater than one. Hence, e

Article No.2
All-India Average Wholesale Prices Of Wheat Up 22%
So Far This Year: Government

Average wholesale price of wheat rose 22% across India to Rs 2,721 per quintal in
November from Rs 2,228 per quintal in January this year, the government data
showed. In a written reply to a question in Rajya Sabha, agriculture minister
Narendra Singh Tomar said, "the prices of agricultural produce including wheat are
determined by the demand and supply conditions in the market, international
prices etc.
As per the data, all-India monthly average wholesale prices of wheat stood at Rs
2,228 per quintal in January, Rs 2,230 in February, Rs 2,339 in March, Rs 2,384 in
April, Rs 2,352 in May, Rs 2,316 in June, Rs 2,409 in July, Rs 2,486 in August, Rs
2,516 in September, Rs 2,571 in October and Rs 2,721 per quintal in November.
Prices of October and November are provisional.
The procurement of wheat in rabi market season (April-June) of 2022-23 fell to
187.92 lakh tonnes as against 433.44 lakh tonnes in 2021-22 as market price of
wheat was higher than the ruling minimum support price during the
period, he added.
Thus, here we see that the prices of Wholesale Of Wheat which are the necessity
goods are becoming more expensive in India. In this case, the demand won’t be
affected since these goods are considered to be inelastic. So, when the prices of
Wholesale Of Wheat go up, consumer’s buying habits stay the same, and when
the price goes down, the consumer’s buying habits remain unchanged.

Article No. 3
Import duty relief on lentils, edible oils extended

The government has extended concessional import duties on edible oils such as
palm, soybean and sunflower and the duty waiver for lentils by a year, until March
31 2024. The duty reliefs for edible oils were first introduced in July 2021, in the
wake of a spike in domestic prices. In September 2022, these concessions were
extended by six months to March 31, 2023. At present, crude palm, soybean and
sunflower oils imports attract only the 5% agri infra cess and a 10% education cess
upon it, meaning a total tax incidence of 5.5%.
 India imports around 56% of its annual edible oil consumption; in FY22, it had
imported edible oil valued at Rs 1.5 trillion.Annual imports of edible oil is around
13 million tonne (mt), mostly palm oil (8 mt), soybean (2.7 mt) and
and sunflower(2mt). While palm oil is imported mostly from Malaysia and
Indonesia, soybean and sunflower oils are imported mostly from Argentina 
Ukraine.
Palm oil prices rose sharply globally when Indonesia, the biggest exporter of oil,
had imposed a ban on palm oil exports on April 28, which was lifted after three
weeks. Since then, palm oil prices have declined. The edible oil and fat category
saw a negative inflation at 0.13% in November 2022, mostly contributed by
decline in domestic prices of edible oil since May. According to estimates, the
country imports around 15% of annual pulses consumption. Around 2 mt of pulses
were imported in FY22, out of which 0.6 mt of lentils are imported.
Thus, here we see that the prices of edible oils which are the necessity goods are
becoming more expensive in India. In this case, the demand won’t be affected
since these goods are considered to be inelastic. So, when the prices of edible oils
go up, consumer’s buying habits stay the same, and when the price goes down, the
consumer’s buying habits remain unchanged.

Bibliography:
1.Article No. 1 – Economic Times (Page No. 1, Date – 7 January 2023)
2.Article No. 2 https://www.bqprime.com/business/all-india-average-
wholesale-prices-of-wheat-up-22-so-far-this-year-government?
utm_campaign=fullarticle&utm_medium=referral&utm_source=inshorts
3.Article No. 3 – https://inshorts.com/m/en/news/import-duty-relief-on-lentils-
edible-oils-extended-till-march-2024-1672475917287
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