2.6.3 (HL)—PES for primary commodities

Primary commodity supply is often inelastic in the short run because crops and extraction capacity take time to change.

Weather and harvest cycles can create price swings; storage and diversification can alter the response.

A frost cuts coffee supply before the next harvest, so price rises sharply.

Inelastic is period-specific, not permanent.

Apply PES to a stated time horizon.

Primary commodities generally have lower PES than manufactured products because biological growth and harvest seasons delay output, extraction or land capacity is difficult to expand, commodities may be perishable or costly to store, and specialized factors are less mobile. Manufacturers can often hold inventories, add shifts or redirect inputs more quickly. These are tendencies that depend on the stated time horizon.