PRC-3 · Chapter 11 · Question 46 of 57
The elasticity of supply for highly perishable agricultural goods (like fresh milk or ripe strawberries) on market day is generally:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Inelastic
Explanation
Perishable goods cannot be stored for later sale. They must be sold immediately regardless of price, making their short-run supply highly inelastic.
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