Asked by Kathy Garcia on May 11, 2024
Verified
The short-run instability in the prices of agricultural products arises from the following factors, except
A) inelastic demand for the products.
B) fluctuations in farm outputs.
C) fluctuations in demand for the products.
D) fluctuations in incomes of the farmers.
Short-Run Instability
Fluctuations in economic activity or prices that occur within a short period of time.
Agricultural Products
Items produced through farming and agriculture, including crops, livestock, and other raw materials.
- Develop an understanding of the variables impacting income from agriculture and the price equilibrium of farm commodities.
Verified Answer
KF
Kiara FarrellMay 16, 2024
Final Answer :
D
Explanation :
The short-run instability in the prices of agricultural products is primarily due to factors like inelastic demand, fluctuations in farm outputs, and fluctuations in demand for the products, rather than fluctuations in the incomes of the farmers. The incomes of farmers are more of a consequence of price changes rather than a cause of short-run price instability.
Learning Objectives
- Develop an understanding of the variables impacting income from agriculture and the price equilibrium of farm commodities.
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