If we refer back to the 'Determinants of PES' above and apply each to PRIMARY COMMODITIES:

• SHORT TERM: Agricultural products, in particular, take a very long to time to be regrown, many of them are 'seasonal' so even if the price is rising producers can not quickly increase output, hence the response is inelastic.

• IMMOBILITY OF FOPS: Switching between crops is very difficult and extremely time-consuming. The labour and capital may be able to adapt (mobile), however, the land and climate will not be suitable for growing certain products, hence the response is inelastic.

• UNAVAILABILITY OF ADDITIONAL FOPS: Land is the most important factor of production however even if prices are rising the amount of good arable land available is limited, and in many regions actually shrinking due to both over-farming and industrialisation, hence the response is inelastic.

• FULL CAPACITY: The arable land used in primary commodity production is almost always being used to its full capacity, in fact, it is often overused leading to degradation, due to growing demand from developing nations hence there is little spare capacity to increase output, meaning the response is inelastic.

• INABILITY TO STORE: The majority of the output is 'perishable' and also sold as 'Fresh' hence it is unable to be stored for later use. Therefore when price rises, farmers are unable to draw on stocks, hence the response is inelastic.

• -LIMITED ACCESS TO NEW TECH: New technology in agriculture that increases productivity includes improvements in seeds, fertilisers, and machinery, which would often be too expensive for farmers to access, in addition, the lengthy time needed to replant and nurture would make the responsivness very slow and hence inelastic.

If we refer back to the 'Determinants of PES' above and apply each to MANUFACTURED GOODS:

• SHORT TERM: Manufactured products, relative to primary commodities, in particular, take a much shorter time to be produced, hence the response is elastic.

• MOBILITY OF FOPS: Switching production types between manufactured goods is relatively easier, in particular with production lines or labour-intensive, low skilled products such as textiles and toys. The labour and capital can quickly be adapted, hence the response is elastic.

• AVAILABILITY OF ADDITIONAL FOPS: As mentioned above, if the manufactured product is labour-intensive and utilises low-skilled workers, then the firms should be able to find additional workers relatively easily, in addition, factory space is relatively easier to find, hence the response is more elastic.

• SPARE CAPACITY: The industrialisation of most developing nations has seen an abundance of huge facilities being built, as such, it is more likely that manufacturers have spare capacity, though this obviously depends on the state of the economy, as during times of high growth factories may be operating at closer to full capacity. Though generally speaking producers of manufactured goods will have greater spare capacity to increase output, meaning the response is elastic.

• ABILITY TO STORE: The majority of the output is 'non-perishable' and therefore it can be stored for later use. Therefore when price rises, producers of manufactured goods are able to draw on stocks, hence the response is elastic.

• -ACCESS TO NEW TECH: New technology in manufacturing that increases productivity mainly includes improvements in machinery such as automation. Due to the large profit rewards available, the quantity of R&D devoted to this is huge, as such the stream of new technology is constant, as is the competitive prices available. In addition, these machines are relatively easier and much quicker to implement hence productivity can be increased relatively more easily thus the responsivness is much more elastic.

• When a fluctuating demand curve interacts with an INELASTIC SUPPLY, the price fluctuations are LARGE.

• When a fluctuating demand curve interacts with an ELASTIC SUPPLY curve, the price fluctuations are SMALL.