To be considered a good candidate for an export cartel,a commodity should:
A) Be a manufactured good
B) Be a primary product
C) Have a low price elasticity of supply
D) Have a high price elasticity of demand

Question

Quizplus · Accepted Answer

An export cartel is a group of producers that coordinate to control the supply of a commodity in order to increase its price on the world market. In order for a commodity to be a good candidate for an export cartel, it should have a low price elasticity of supply, which means that its production cannot easily be increased in response to a price increase. Primary products, such as oil or metals, often have a relatively low price elasticity of supply compared to manufactured goods. Therefore, option C is the best choice.

To Be Considered a Good Candidate for an Export Cartel,a