For developing countries, a key factor underlying the instability of primary-product prices and export receipts is the high price elasticity of demand for products such as tin and copper.

Question

Quizplus · Accepted Answer

The instability of primary-product prices and export receipts in developing countries is often attributed to the low price elasticity of demand for products such as tin and copper, meaning that small changes in supply can lead to large fluctuations in prices.

For Developing Countries, a Key Factor Underlying the Instability of Primary-Product