A region will experience growth, if the demand for its export increases. State in which of the condition Region will not grow?
1
The per capita income in the exogenous sector is rising and the income elasticity of demand for the exports is high
2
Depletion or exhaustion in other areas producing the same item
3
If its income elasticity is low or negative, the decrease in demand associated with a growing population is lesser than the increase of per capita income
4
Improved transferred facilities have lowered total delivery costs making marginal producers in other areas unable to compete