Concept:Agricultural produce consists mainly of essential food items whose consumption cannot easily be postponed.
Explanation:The demand for agricultural produce is generally price inelastic.
This means that a change in price does not bring about a proportional change in the quantity demanded.
Agricultural products are mostly necessities, so even when prices rise, consumers still buy almost the same quantity.
These goods also have no close substitutes, which further reduces the responsiveness of demand to price changes.
In addition, most farm produce is perishable, so consumers cannot delay their purchases for a long time.
Consequently, the percentage change in quantity demanded is always smaller than the percentage change in price.
Therefore, the demand curve for agricultural produce tends to be steep or nearly vertical.
Answer:The demand for agricultural produce is generally inelastic.
The correct option is B.