One of the economic laws says that as income increases, the proportion of starchy staples in the food basket decline relative to the share of more expensive sources of calories. Recent NSSO data showing a significant increase in the share of protein rich items in total food expenditure, both in rural and urban areas of India to confirm this hypothesis.
What this hypothesis is known as?
Answer: C
We need to turn to the lesser known Bennet’s law for an explanations of food inflation. Bennet’s law suggests that as income increase, the proposition of starchy staples in the food basket declines relating to the share of more expensive source of calories. Recent NSSO data showing a significant increase in the share of protein rich items in total find expenditure, both in rural and urban areas confirm this hypothesis.