Short-term price swings for farm products are partially the result of
A)Producers acting collectively to bid up prices.
B)The high income elasticity of food demand.
C)The high price elasticity of food demand.
D)Time lags between the production decision and the resultant harvest.

Question

Quizplus · Accepted Answer

Short-term price swings for farm products are partially the result of time lags between the production decision and the resultant harvest. This means that the prices can be affected by factors such as weather conditions, crop diseases, and other unforeseen events that can affect the supply of farm products. Farmers may not be able to adjust their production quickly enough to respond to changes in demand, leading to short-term price fluctuations.

Short-Term Price Swings for Farm Products Are Partially the Result