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Can less developed countries economies grow by developing its primary sector as agriculture?
Less developed countries economies can grow by developing its primary sector as agriculture because:
• The majority of the world poor is rural poor. Thus agricultural reform can do most to enhance the standard of living of rural poor.
• Neglect of agriculture through less developed countries can check progress since food has to be imported
• Agricultural transformation can be less disruptive, increase productivity and exploit comparative benefit.
• Several agricultural products like quality wines consist of a high YED and PED.
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Quantitative demand for watermelons = 50-3P(wm) - 20P(hd) + 10 P(sc) + 0.001(income) P(wm) = $4.00 P(hd) = $3.00 P(sc) = $2.00 Income = $40,000 Quantity supply of watermelons = 2
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