Prices of farm products are
A)Very stable in the short run.
B)Subject to short-term swings.
C)Below the market equilibrium price because of price support programs.
D)The result of government-enforced price ceilings in the farming industry.

Question

Quizplus · Accepted Answer

Prices of farm products are subject to short-term swings due to factors such as weather conditions, changes in demand and supply, and fluctuations in input costs. While price support programs and government-enforced price ceilings can also impact prices of farm products, these are more long-term factors and do not necessarily lead to stability in the short run.

Prices of Farm Products Are