Q) With the help of examples from the Indian economy bring out the impact price rise on inferior and luxury goods and necessities. (10 marks, 150 words)
भारतीय अर्थव्यवस्था के उदाहरणों की सहायता से घटिया और विलासिता की वस्तुओं और आवश्यकताओं पर मूल्य वृद्धि के प्रभाव को सामने लाएँ।
Demand of the Question– This concept demands understanding of inflation and its effect on various types of goods and on various sections of society.
Directive Word– Help of examples & bring out impact- These keywords demand explaining the concept with the help of examples.
Structure of the Answer
Intro- Describe what inflation is and use RBI data stating its current scenario. Link it with the effects on various types of goods and services.
Body- In part one, take 3 examples, 1 from each luxury and inferior goods and necessities, and discuss these in 2 cases- without inflation and with inflation. In the second part, a small discussion about the impact of inflation on users of these goods, covering the impacts on various strata of society.
Conclusion- State how inflation affects/hinders development and growth. Mention that RBI controls it and how it controls it. Conclude by stating that the right amount of inflation is desirable.
Part of Syllabus– GS paper 3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.