Asked by Jameka Hicks on Jun 17, 2024

verifed

Verified

A source of demand volatility for agricultural products is

A) the strict application of "100 percent parity" by the Department of Agriculture.
B) a sharp fluctuation in foreign demand for U.S. farm products.
C) the large grain harvest which resulted from excellent weather.
D) the increasing mechanization of farms.

Demand Volatility

Refers to the degree of unpredictability or fluctuations in consumer demand for products or services over time.

Agricultural Products

Goods produced through farming and cultivation of the land.

  • Examine the influence of outside elements, including climatic conditions and global markets, on the volatility of demand in the agricultural sector.
verifed

Verified Answer

RD
Robin DickinsonJun 24, 2024
Final Answer :
B
Explanation :
A sharp fluctuation in foreign demand for U.S. farm products can cause demand volatility for agricultural products. This is because changes in foreign demand can lead to significant shifts in the amount of products sold overseas, impacting prices and demand levels in the domestic market.