What are Primary Products? -Note Properties of them (Elasticities, Value added..)

-Also known as Commodities, they are Products taken Directly from the Earth -This can include Minerals like Copper and Iron, or Plants like Rice, Wheat and Fruits -This is where 'value added' is Low. They won't generate Huge Profits as a Firm won't be able to Increase the Products Worthiness -Also they are usually price-inelastic. Change in Demand --> Huge Effect on Price. Some Agriculture Primary Products will be Supply Inelastic too, because its Hard to Quickly Grow some Crops, plus, Damage from Natural Events and Weather.