Wide price swings in farm products are the result of
A)Supply shifts and the relatively inelastic demand for food.
B)Supply shifts and the relatively elastic demand for food.
C)The high income elasticity of food demand.
D)Demand shifts and the relatively elastic supply of food.

Question

Quizplus · Accepted Answer

Supply shifts and the relatively inelastic demand for food lead to wide price swings in farm products because when supply changes, the price must adjust significantly to bring the market back to equilibrium due to the inelastic nature of food demand.

Wide Price Swings in Farm Products Are the Result of