There is shortage of basic essentials like pulses, oil etc. What will be its impact on prices ? What should be done by the governemnt to check this?

There is shortage of basic essentials like pulses, oil etc. What will

1.	There is shortage of basic essentials like pulses, oil etc. What will be its impact on prices ? What should be done by the governemnt to check this?
Answer» Solution :Shortage of basic essential like pulses, oil etc will lead to fall in their supply causing rise in the prices since demand of essentials is inelastic, increase in their prices WOULD be a problem for the common man. HENCE, Government should interfere to check HOARDING and black marketing. Goverment should strengthen its public DISTRIBUTION system. Government may renew the eligibility conditions of acquiring these goods through fair PRICE shops.