Ts. Indicate crease orEI1. Given below are four statements. Indiafor each whether it reflects an increasedecrease in:demand; quantity demanded; supply.quantity supplied.() Air Deccan reduces its average planfare by 30% in order to attract morepassengers.(11) The Government grants export subsiduto producers of oranges in Nagpur toincrease the sale of oranges abroad.(iii) Wheat farmers decide to withhold wheatas the market price is low.(iv) OPEC decides to increase the internationaloil price.

Ts. Indicate crease orEI1. Given below are four statements. Indiafor

1.	Ts. Indicate crease orEI1. Given below are four statements. Indiafor each whether it reflects an increasedecrease in:demand; quantity demanded; supply.quantity supplied.() Air Deccan reduces its average planfare by 30% in order to attract morepassengers.(11) The Government grants export subsiduto producers of oranges in Nagpur toincrease the sale of oranges abroad.(iii) Wheat farmers decide to withhold wheatas the market price is low.(iv) OPEC decides to increase the internationaloil price.
Answer» ease in demandII) Increase in supplyIII) DECREASE in quantity suppliedIV) Decrease in quantity demandExplanation:In the first instance,as Air Deccan reduces its average plan fare,the overall demand for Air Deccan air tickets will increase signifying an increase in market demand.In the second case,the government export subsidy is a non-price SUPPORT to the producers of oranges.There is no CHANGE in price and so quantity supplied will not change and the overall supply will increase.In the third case,if the wheat producers STOP supply due to low price,the quantity supplied will drop as here we have a change in product price and any change in product price will affect quantity supplied.Finally,OPEC decision to RAISE the international oil price also reflects a price change in the market which will reduce the quantity demanded by the consumers.As again,there is a price change in the market,quantity demanded will be affected.