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PRC-3 · Chapter 11 · Question 26 of 57

Why is the supply of fresh, perishable agricultural goods (like ripe tomatoes) generally highly inelastic in the very short run (e.g., market day)?

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Reveal answer & explanation

Correct answer: C) Because the goods must be sold immediately before they rot, regardless of price drops

Explanation

Perishable goods cannot be withheld from the market and stored for later when prices improve. They must be sold immediately, making short-run supply very inelastic.

All 57 questions in Chapter 11Elasticity of Demand and Supply MCQs with answers

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