(a) Factors affecting market demand are as follows: 

1. Price of the Product: As price rises, the demand falls and vice-versa.

2. Consumer’s Taste and Preference: As tastes and preferences shift from one commodity to the other, demand for the first commodity reduces and that of the other commodity rises. 

(b) Factors determine the supply of labour are as follows: 

1. Population: The larger the population, the larger will be the number of persons who are available for work. Hence, the large will be the supply of labour. 

2. Wage Rate: The higher is the wage rate the larger becomes the supply of labour. This is because the rise in the wage rate makes work economically more attractive. 

(c) Demand-pull inflation occurs when the demand for goods and services exceeds the supply available at existing prices. i.e., when there is excess demand for goods and service. Demand increases rapidly because of increase in purchasing power/money in economy which exceeds the limited supply and will bid up the prices. This pull up the price level and will lead to emergence of inflation. 

(d) Progressive taxation is suitable for indian economy because of the following reasons: 

1. It is more suitable, as a larger part is taxed on higher incomes. In this, the rich should be taxed at a higher rate than the poor. 

2. It is more economical as the cost of collection does not rise when the rate of tax increases.

(e) The two contingent functions of money are as under: