A. elastic
B. inelastic
C. unitary
D. static
Correct Answer: Option B
B. inelastic
Explanation
Choice B is correct. A price-inelastic demand would mean that an increase in price would not necessarily lead to a decline in quantity demanded or in case it does proportion of quantity change would be lesser vis a vis the change in price.
Demand tends to be price inelastic for agricultural produce for the following reasons.
1. Price changes don’t affect consumption much
2. These produces are mostly necessities
3. Possibility of postponement is not there for most of these produces
