Frequently, the prices of primary products are volatile because both the demand and supply curves are inelastic.

Name: Frequently, the prices of primary products are volatile because both the demand and supply curves are inelastic.
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Question

Quizplus · Accepted Answer

The inelasticity of both demand and supply curves means that changes in price have a relatively small impact on quantity demanded and supplied. This can lead to large price swings in response to relatively small changes in market conditions.

Frequently, the Prices of Primary Products Are Volatile Because Both