The following table shows the Wholesale Price Indices of industrial goods. Prepare a line diagram and answer the questions that follow:

a. Which commodity’s price rose sharply over the years?

b. What could be the reasons for a slow rise in cotton cloth and fertilisers?

c. Does the government play any role of any of the commodities? How?

(a) The price of coal has risen sharply over time. It was constant and stable in 2005 and 2006. But it rose to 165 very rapidly during 2010.

(b) During the six years, cotton cloth rose from 99 to only 115 and fertilisers from 102 to 117. This is mainly because of the character of the industry. Both cotton clothes and fertilisers are primary good industries whose demand does not rise rapidly. Also, the other commodities are basic good industries providing raw materials for other industries. Thus, industrial expansion results in their growth.

(c) Yes, the government plays an active role in the above-mentioned industries. All the above industries produce basic goods for the use of other industries. Thus promoting those industries will help in the expansion and development of other related industries. Thus government involves in the functioning of the industries. They can be wholly or partly subsidized by the government.