Changes in the Demand, Supply & Price

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// Price is determined by the movement of demand and supply in the market. This paper talks about the reason behind change in the demand, supply and price in the cotton industry as discussed in an article. Before delving into the problem, the source of the article should be presented, like this: //

Introduction

This article has been drawn from the renowned Business Line Internet Edition, which is a financial daily from The Hindu group publications. This article has been written by G. Chandrashekhar and basically deals with the price, demand and supply in the cotton industry. If we go through the fundamental economic concepts, it is very clear that the price of any product is decided by its demand and supply in market.

// Now, an overview of the cotton industry is presented including the present state of revenue and competitiveness and also the future potential.//

Overview of Cotton Industry

The Cotton industry had achieved a global competitiveness due to the growing use of hereditarily customized cotton seeds, high production yields, rapidly increasing world demand and liberal support expenses from the Government. Sky-scraping domestic prices and amplified exports are expected to further encourage revenue growth. A prospective new market for this industry may be bio-fuels formed from cottonseed oil. The recognition of cotton products is not expected to fade with consumption growing at faster rates than demand for artificial fibers (Cotton Farming, 2008).

//. The next part of the paper talks about the change in the global price of cotton industry due to its demand and supply scenario and its expected implications.//

Price, Demand and Supply in the Cotton Industry

This article deals with the global price changes of ...