IIPolaroidII
Badges: 12
Rep:
?
#1
Report Thread starter 11 months ago
#1
Hello, just revising Unit 4 in the Edexcel specification and I was wondering if I could get some help.

The section is 4.3.2 - Factors Influencing Growth and Development.

The section is taking about commodity prices as a factor, and it says the following:

"One reason why commodity exports may not increasing development is falling commodity prices. The more price inelastic the demand, the greater the fluctuations are to the price. Sudden price changes cause large increases/decreases in revenue for the economy, making it hard for agents to predict revenues in the short and long term."

Why would the prices being more inelastic cause there to be great fluctuations? Maybe I'm just missing something obvious.

Cheers.
0
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

University open days

  • The University of Law
    Solicitor Series: Assessing Trainee Skills – LPC, GDL and MA Law - Guildford campus Postgraduate
    Wed, 29 Jan '20
  • Nottingham Trent University
    Postgraduate Open Day Postgraduate
    Wed, 29 Jan '20
  • University of Groningen
    Undergraduate Open Day Undergraduate
    Fri, 31 Jan '20

Have you ever signed up for an open day and then not gone to it?

Yes (150)
51.72%
No (140)
48.28%

Watched Threads

View All
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise