Page:Indian Journal of Economics Volume 2.djvu/417

 REEATIVE PRICES OF FOOD GRAINS 401 prices shows .ha very supply supply The relevan considerable and and he normal relations fluctuations, which depend demand of he particular grain demand of foodgrains on he portion of he law variagions known as Gregory King's are subjec o on he or he whole. regarding hese law as given bye Professor Thorold Rogers tation of History is as follows :-- "3. If. in he scarcity or excessive plenty, which prevails, as he case may be, here are several kinds of he same article which ordinarily sand in a cer- a|n raio o each oher, and can be used inter- changeably, he 'rise of price is greaes in wha has in his Economic Intrpre- has hitherto been he dearest. This rule will require a lile explanation. Roughly speaking wheat, barley and oas sand in he raio 100, 73 and 50. Now in imes of scarcity, 73 and 50 will rise more han 100 does, and if here be a fll in prices owing o excessive supply, 100 will fall more han 73 and 50 do. This rule is of he greaes importance in practice and in a rough manner is seen hough none oo clearly by practical.men of business." An examination of prices showed ha over he greaer portion of India, people were willing o pay more for rice and whea in proportion to' heir food value han for just, bajra, barley and gram.  Rice and whea are, herefore, favored grains, and he cheaper grains will generally be ruled by ihe prices paid for whea and rice. In he central part of India, consisting of Bihar, United Provinces, Central Provinces and Bombay, boh rice and whea are exensively used for consumption, and he relations t In parts of the Bombay Presidency and the Oentral Provinces, a minority of the people, owing no doubt to long accustomed habits of consumption, would appear to prefer juar and ara to wheat. 5t highergo been ghe cheapesg form; and conversely in a gime of. over-supply ghe greagesg fall is in whag