GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The market period supply curve for perishable commodities is
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Relatively elastic
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Perfectly elastic
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Relatively inelastic
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Perfectly inelastic
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Explanation:
Detailed explanation-1: -The market-period supply curve of a perishable commodity is perfectly inelastic, or a vertical straight line.
Detailed explanation-2: -The time period for perishable commodities is only a day. For instance, if the demand for a vegetable increases, its supply cannot be increased on the same day. Therefore, the supply of vegetable being fixed, its price is determined by demand on that day.
Detailed explanation-3: -A “perishable agricultural commodity” is any fresh fruit or vegetable, whether or not frozen or packed in ice, and includes cherries in brine, as defined by the USDA Secretary.
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