Since the Delhi government is facing socio-political problem due to sharp rise in onion price from

`30 p/kg tò90 p/kg. So the government plans to import onion to meet the domestic demand for one year. The authorities want you to forecast annual demand for onion.

What kind of demand function will you use to estimate the annual demand for onion? Give reasons for your choice.

10 “The concept of elasticity of demand and demand forecasting are versatile tools of economic analysis.” Discuss the validity of this statement with appropriate examples.