Substantial fluctuations in market prices of cocoa and coffee reported in 1983-1997 confirmed the price of agricultural products is more volatile if compared with manufactured products. Contents Summary …………………………………………………………………………………...1 1. Introduction ……………………………………………………………………….. 3 1.1 Definition and Characteristics of agricultural products…...
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………………………… 3 2. Price Elasticity of Demand…………………….……………………………………4 2.1 Determinants of Price Elasticity of Demand ……………………………………….5 2.2 Availability of close substitutes……………………………………………………..5 2.3 Proportion of income spent on the product………………………………………….5 2.4 Time horizon ………………………………………………………………………...
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