Elasticity of supply for agricultural products is low due to:
(i) Perishable nature of products – most agricultural products are perishable and cannot therefore be
stored for long and especially since storage facilities would be very expensive to establish and
maintain.
(ii) Gestation period (the period between planting and harvest) – once planted, agricultural products take
time to mature and become ready for harvest; thus supply tends to be relatively inelastic during this
period in that the quantity of a product cannot be increased.
(iii) In-elasticity of demand – Since agricultural products are used in small quantities as inputs
(raw materials) in manufacturing processes, they are purchased in small quantities; thus
production may not always be sufficient to achieve the required periodic level of supply.
Wilfykil answered the question on February 4, 2019 at 12:39
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