Give reasons or explain: iv. The supply of agricultural commodity is relatively inelastic.

Give reasons or explain:

iv. The supply of agricultural commodity is relatively inelastic.

ANSWER:

The supply of agricultural commodities is subject to a high degree of uncertainty. For example, whatever be the price, the supply of wheat cannot be increased in the short run in the event of any natural calamity or crop failure. Thus, we can say that the supply of an agricultural commodity is relatively inelastic.

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