Prepared by : Khanpara Dharm N. Submitted by : Dr .

Chirag Sir
Enrollement : 23SG02AG011
What is Utility (form and type)
In economics, utility refers to the satisfaction a consumer gets from a
good or service. There are different types:
Form utility: This is based on the design and functionality of a product
itself. A well-designed phone is more useful than a clunky one.

What is Price (Welf and Welfare

Price is the monetary cost of a good or service. It affects welfare
(economic well-being) in two ways:
Consumers: Low prices increase welfare as they can afford more.
High prices can strain budgets.
Producers: Low prices can hurt producers if they can't cover costs.
Fair prices ensure healthy markets and contribute to overall welfare.
What Humans Want and
Character of Human Wants
Humans are driven by desires, which become wants for specific things.
These wants have some key features:
Unlimited: We crave more and more, even after fulfilling some
desires.
Varied Intensity: Some wants are urgent (hunger), while others are
less pressing (new clothes).
Competing: Limited resources mean we prioritize stronger wants.
Satiable (to an extent): We can fulfill individual wants, but new ones
arise.
Ever-changing: Wants evolve with age, experiences, and societal
influences.
Classification of wants ,
Necessary Comfortand Luxurys
Law of diminishing
Our desires can be classified into three categories:
1. Necessities (5 lines a day): Essential for survival, like food, water, and
shelter.
2. Comforts (furnishings, entertainment): Enhance well-being but not
essential. They make life more enjoyable.
3. Luxuries (jewelry, vacations): Non-essential but desirable goods that
signal status or provide great pleasure.
Law of Diminishing Marginal Utility : The more you consume something,
the less additional satisfaction you get from each extra unit. For example,
the first slice of pizza is amazing, but the 10th might not be as exciting.
Collection and Presveration
In agriculture, collection and preservation go hand-in-hand:
1. Collection: Gathering seeds, plant cuttings, or livestock for future use.
This ensures access to desired varieties.
2. Seed Banks: Store seeds in controlled environments (low temp, low
humidity) for long-term viability.
3. Field Gene Banks: Maintain diverse crop varieties growing in fields for
ongoing access and resilience.
4. Cryopreservation: Freezing plant tissues or animal sperm/eggs in
liquid nitrogen for very long storage.
5. Traditional Methods: Farmers also preserve by saving seeds from
their harvests for replanting next season.
what is demand , function and
type
In agriculture, demand refers to consumer willingness and ability to buy
farm products:
Factors: Income, price, preferences, and availability influence
demand.
Demand Function: This mathematical formula shows how quantity
demanded changes with price (generally, lower price = higher
demand).
Types of Demand:
Inelastic: Demand barely changes with price swings (e.g., essential
food staples).
Elastic: Demand changes significantly with price swings (e.g.,
luxury fruits).
Factors Affecting Demand in
Agriculture and Importance
Price: Lower price generally leads to higher demand, and vice versa.
Income: Rising income can increase demand for higher-quality or
non-essential food items.
Consumer Preferences: Tastes, health trends, and convenience
influence what people buy. (Think organic vs. conventional produce.)
Substitutes & Complements: Availability of cheaper alternatives or
products consumed together (like bread and butter) affect demand.
Seasonality: Demand for some products fluctuates with seasons (e.g.,
higher for strawberries in summer).

Importance of Demand Understanding :

Knowing demand helps farmers make informed decisions about:
What crops/livestock to raise to meet market needs.
Pricing strategies to maximize profit within a competitive market.
Marketing efforts to target specific consumer preferences.
Importance of economics
Resource Allocation: Helps societies decide how to distribute scarce
resources for maximum benefit.
Decision Making: Informs individuals, businesses, and governments
on choices affecting finances and well-being.
Understanding Markets: Explains how supply and demand interact,
shaping prices and influencing production.
Policy & Prediction: Guides economic policies to promote growth,
stability, and address issues like unemployment.
Informed Citizenry: Equips people to understand economic news,
trends, and make informed personal financial decisions.
GST (Goods and Services
Tax) brings several
advantages
Eliminates Cascading Effect: No more "tax on tax"! GST avoids double
taxation, reducing the final price of goods.
Simplified Compliance: Fewer tax forms and a single online filing
system make things easier for businesses.
Boosts Efficiency: Streamlined logistics with fewer tax checkpoints
lead to faster movement of goods.
Wider Tax Base: More businesses register under GST, increasing
overall tax revenue.
Transparency & Fairness: A uniform tax system promotes fair
competition and reduces tax evasion.
GST plays a mixed role in
Indian agriculture, offering
benefits
Reduced Input Costs: GST lowers taxes on most agricultural inputs
like seeds, fertilizers, and equipment. This can decrease farming costs.
Seamless Movement: GST eases interstate movement of produce by
eliminating multiple state taxes. This can improve market access for
farmers.
Transparency: Input tax credit system allows farmers to claim credit
for taxes paid on inputs, reducing hidden costs. However:
Most farm outputs are exempt from GST, limiting direct tax benefits
for farmers.
Complexities for some value-added agriculture activities like
processing can add burden.
Utility ID importance and Type
Importance:
Account Management: IDs link customers to their specific service
accounts, enabling providers to track usage and billing.
Security: Verification: IDs help validate a customer's identity when
accessing accounts or requesting service changes.
Efficiency: Streamlined Service: IDs allow providers to quickly access
customer information for faster service and troubleshooting.
Types:
Account Numbers: Traditional alphanumeric codes for customer
identification.
Meter Numbers: Unique identifiers linked to physical meters for
tracking individual usage.
Customer IDs: Internal identifiers assigned by the utility company for
account management.
Agricultural production
economics
1. Analyzes how farms use resources (land, labor, capital) to optimize
output and profit.
2. Considers factors like input costs, product prices, and consumer
demand.
3. Helps farmers decide what crops/livestock to raise, how much to
produce, and how to allocate resources efficiently.
4. Aims to ensure food security and economic well-being for farmers
and consumers.
5. Crucial for understanding challenges and opportunities in the
agricultural sector.
Subject matter of agricultural
economics and objectives
1. Subject Matter: Analyzes production costs, market forces, and
consumer behavior impacting agriculture.
2. Objectives: Aims to:
Improve farm profitability through efficient resource allocation and
pricing strategies.
Ensure food security by understanding consumer demand and
optimizing production.
Promote sustainable practices that balance economic goals with
environmental concerns.
3. By understanding economic forces, agricultural economics helps
farmers make informed decisions and navigate the complex
agricultural market.
Agricultural economics tackles
the financial aspects of farming,
impacting various fields crucial
for the industry
1. Production Economics: Analyzes costs, resource allocation, and
output to maximize farm profitability.
2. Marketing & Trade: Studies consumer demand, pricing strategies, and
international trade to connect farmers with markets.
3. Resource Economics: Focuses on efficient land-use, water
management, and conservation practices for sustainability.
4. Development Economics: Addresses challenges faced by small-scale
farmers and promotes agricultural growth in developing countries.
5. Policy Analysis: Evaluates the impact of government policies on farm
income, food prices, and rural development.
Basic Production Problem
1. Resource limitations: Farmers have limited land, water, labor, and
financial resources to produce crops or raise livestock.
2. Balancing Act: The goal is to maximize output (yield or animal
production) using these limited resources.
3. Decision Making: Farmers need to decide what crops/livestock to
raise, how much to produce, and how to allocate resources
efficiently.
4. Unexpected Challenges: Weather, pests, diseases, and market
fluctuations can disrupt production plans and reduce yields.
5. Constant Optimization: Farmers strive to adapt and improve their
practices to overcome these challenges and ensure sustainable
production.
Law of Returns
1. Adding Inputs: As you increase one factor of production (e.g.,
fertilizer) while holding others constant (land, labor), initial output
increases.
2. Diminishing Gains: However, eventually, the additional output gained
from each extra unit of input starts to decrease.
3. Limited Resources: Land, sunlight, water, etc., become limiting
factors. More fertilizer might not benefit plants if these are restricted.
4. Finding the Sweet Spot: Farmers aim for the point where adding more
input still significantly increases output (optimal level).
5. Beyond Optimal: Adding even more input might even harm
production due to issues like nutrient overload.
 Divisions of Econimcs
1. Microeconomics : Focuses on individual decision-making units like
consumers, firms, and markets. It analyzes how these units allocate
scarce resources, considering factors like

Prices
Supply and demand
Production costs
Consumer behavior

2.Macroeconomics : Deals with the economy as a whole, looking at

large-scale factors like:

Inflation
Unemployment
Economic growth
Government policies
International trade
Defination of Econimcs

Here's the definition of economics in :

1. Economics is the social science that studies how individuals, societies,
and governments make choices under conditions of scarcity.
2. It analyzes how resources are allocated, produced, distributed, and
consumed.
3. This includes studying factors like prices, markets, supply and
demand, and human behavior.
4. The goal of economics is to understand how economies function and
to develop policies that promote efficiency, growth, and stability.
Basic Concept : Goods and Service
Goods:
Tangible: These are physical objects you can touch and hold, like
a shirt, a phone, or a bag of apples.
Ownership transfer: When you buy a good, you become the
owner and can resell or discard it.
Examples: Clothes, electronics, furniture, groceries.
Services:
Intangible: These are actions performed for you, experiences you
have, or expertise you utilize. You can't hold a service in your
hand.
No ownership transfer: You pay to access a service, but you don't
own it. Think of a haircut, a concert, or a doctor's visit.
Examples: Haircuts, education, healthcare, transportation,
entertainment.
Region of Produnction : Divison
Econimcs
Cost Considerations: Businesses consider factors like labor costs, land
availability, and infrastructure when choosing a production location.
Lower costs in a particular region can improve profit margins.
Market Access: Proximity to target markets reduces transportation
costs and delivery times. Being closer to consumers can give
businesses a competitive edge.
Government Policies: Tax incentives, regulations, and trade
agreements in a specific region can influence production decisions.
Favorable policies can attract businesses.
Resource Availability: Access to raw materials, labor with specific
skills, or natural resources needed for production can influence
location choices.
Risk Diversification: Companies might spread production across
regions to mitigate risks like natural disasters or political instability.
 Thank You
Part of the Agricultural Production Industrial Complex