Abstract

                                The present paper intends to study the rice output supply and factor inputs (labour, fertilizer and bullock) demand by using Unit-Output-Price profit function. In order to fulfill the objectives, 80 respondents were selected randomly. The study was conducted in Kaveripattinam block of Dharmapuri district, North- Western zone of Tamilnadu. It is lucid from the study that the rice supply responds to its own price but inelastically. Rice supply has inverse relationships with price of labour and bullock power and positive relation with price of fertilizers. Also, it is evidenced from the study that the own price elasticities of labour and bullock power are negative, support the neo-classical theory of demand. Hence, one could possibly to conclude that by suitable price policy, as a major instrument, rice productivity and factor absorbtion in agriculture could be increased.

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