The short-run inelasticity of supply of agricultural produce causes

Deez_nut2

5 months ago

The short-run inelasticity of supply of agricultural produce means that producers cannot quickly adjust the quantity supplied in response to changes in price. This is due to factors such as fixed production cycles (e.g., growing seasons) and the perishable nature of goods. As a result, small shifts in demand or unexpected events (like weather changes) can lead to significant fluctuations (instability) in market prices, as supply cannot readily absorb these changes.

The correct option is [D. instability in prices.]