The demand for agricultural produce is generally
Elastic
Inelastic
Unitary
Static
Correct answer is B
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 produce are mostly necessities
3. Possibility of postponement is not there for most of these produce