A problem for developing countries is that the prices of primary products fluctuate more widely than the prices of finished goods because _____
A) crop supply changes very little despite the weather.
B) crop supply fluctuates with the weather.
C) weather never varies.
D) the demand for primary products fluctuates as the cost of production changes.
E) the demand for primary products fluctuates with the weather.

Question

Quizplus · Accepted Answer

The prices of primary products, such as crops, are influenced by factors such as weather, which can cause fluctuations in supply. In contrast, the prices of finished goods are influenced by the cost of production, which tends to be more stable. Developing countries are often reliant on primary product exports, which means that they are more vulnerable to price volatility.

A Problem for Developing Countries Is That the Prices of Primary