ECO401 GDB

A)
Government should take given are some appropriate actions:
Government should buy the whole amount of wheat and place it at some safe place.
If not then government should make a tax free zone for the farmers and give hem some necessary facilities like approach to the market, conveyance and road facilities, and government should decrease the prices of insect killing medicines & fertilizers.
1) Government should provide the inputs to the formers at subsidies prices.
2) Should provide the insurance on wheat crop.
3) Set the reasonable support price.
B)
Elastic demand of coffee because it will be affected by fluctuations in prices.
Elasticity of demand is the percentage change in quantity demanded with respect to the percentage change in price. PEd = % change in quantity demanded / % change in price