A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because
A)crop supply changes very little despite the weather
B)crop supply fluctuates with the weather
C)weather never varies
D)crops go in and out of fashion as new diets are developed
E)crop demand fluctuates with the weather

Question

Quizplus · Accepted Answer

The prices of primary products are influenced by a variety of factors including supply and demand, government policies, and natural disasters. Developing countries are often heavily dependent on primary products such as crops for their export revenues. Since the supply of crops fluctuates with the weather, the prices of these crops also tend to fluctuate more widely than do the prices of finished goods. This can lead to instability in the economies of developing countries and can make it difficult for them to plan for the future.

A Problem for Developing Countries Is That the Prices of Primary