Based on what you know about the determinants of price elasticiyt, the demands for agricultural products, like, wheat, soybeans, milk, and eggs tend to be
A) price inelastic
B) price elastic
C) price inelastic only in the long run
D) price elastic only in the short run
E) price elastic only in the long run

Question

Quizplus · Accepted Answer

The demands for agricultural products like wheat, soybeans, milk, and eggs tend to be price inelastic. This is because these products are necessities for many consumers, and there are few close substitutes available. Additionally, these products often make up a small portion of consumers' overall budgets, meaning that even if prices were to increase, consumers are unlikely to change their purchasing habits significantly. However, over the long run, consumers may have more time to adjust their behaviors and seek out substitutes, which could make demand more price elastic.

Based on What You Know About the Determinants of Price