Give reasons "The supply of agricultural commodity is relatively inelastic".
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3
Well, commodities are staples, so wheat, corn, etc are always going to be in Demand as we use them in all kinds of food stuff. Plus with population increase demand is even stronger. So if commodity prices rises, we expect demand to fall slightly but in reality this will be really small as there is an argument that subsides and other protectionist measures are keeping commodity prices low and in fact they should have risen rapidly
Answered by
7
Heya...
See here for your answer....
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Supply is relatively inelastic means,,
If price change then the supply will not change at large proportion or no change....
Reason...
Agricultural output is depend on natural constraint not on direct willingness to producer , suppose if prices are high of wheat but producer have not stock of wheat so he can't increase the supply with change in price at time , so it is inelastic..
Thank you
See here for your answer....
=================
Supply is relatively inelastic means,,
If price change then the supply will not change at large proportion or no change....
Reason...
Agricultural output is depend on natural constraint not on direct willingness to producer , suppose if prices are high of wheat but producer have not stock of wheat so he can't increase the supply with change in price at time , so it is inelastic..
Thank you
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