As the price of sugar decreases, the quantity demanded for sugar increases. This reflects on the law of demand when the price of a good falls, the quantity demanded will rise. Since the festive season is a determinant that causes demand to rise, the whole curve shifts to the right, consequently, increasing the demand. This shows that at each price, more sugar will be demanded than before.
However, according to the article, the author stated that the government is forcing the retailers and suppliers to increase the supply of sugar by 5%. The quantity supplied of any good or service is the amount that sellers are willing and able to sell. The law of supply states that the quantity supplied rises as the price of a good rises, other things remain the same. At that time, the supply curve of sugar is the same.
In my opinion, this actually depends. The festive season affects the demand curve because it alters the amount of sugar that households want to buy at any given price. At the same time, the government forces the suppliers and retailers to increase the supply for sugar because of the high demand.
Indian economy crisis (Venkataram, 2013)
Take the instance of the Indian economy where there is a discrepancy between supply and demand of skilled labor. With the increase in economic activity within India there is a inordinate need for skilled labor. So there is shift in demand curve to the right. If proper increase in investment in instilling skills for the…