second demand elasticities are relatively small with respect to price and supply elasticities are also low at least in the short run in order to get supply and demand back into balance after a supply shock prices therefore have to vary rather strongly especially if stocks are low third because production takes considerable time in agriculture supply cannot respond much to price changes in the short term though it can do so much more once the production cycle is completed the resulting lagged supply response to price changes can cause cyclical adjustments that add an extra degree of variability to the markets concerned