Categories: Economics WAEC

Supply of agricultural products is likely to be elastic in the?

A. intermediate period
B. long-run
C. market period
D. short-run

Correct Answer:

Option B = long-run

Explanation

The elasticity of supply measures how changes in prices would affect supply. The supply of agricultural products is most likely to be elastic in the long run, (a period of time where all factors of production and costs are variable). This means that in the long run, the cost of farm inputs and factors of production used in farming would be subject to change, and farmers cannot as a matter of fact place a fixed cost on their estimated expenses

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