State whether the following statement are TRUE and FALSE. vi. Supply for perishable goods is inelastic.

Chapter 5 - Producer's Behaviour Economics Solutions for Class 12 Commerce Economics 


State whether the following statement are TRUE and FALSE.

vi. Supply for perishable goods is inelastic.

Answer:  Supply for perishable goods is inelastic. - True

Explanation:
It is correct. Perishable goods (such as food grains, milk products etc.) are those goods that are subject to decay or spoilage. Since these goods cannot be stored for a longer time, their supply cannot be changed immediately in response to change in price. As a result, their supply is inelastic.

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