A product charge like a tax on fertilizer can be effective demand for fertilizer is inelastic. Therefore, A: inelastic is the correct answer.
The term inelastic demand refers to a situation where demand for a product remains the same, no matter how far its price rises or falls. A product is said to have elastic demand in cases when the change in quantity demanded is large and when there is a change in price.
As a whole, it is evident that demand for agricultural products such as fertilizer is relatively inelastic. This is because the price elasticity of demand for fertilizer is relatively unresponsive; it means that an increase in fertilizer price through the tax will have a proportionally-lower decrease in the amount demanded.
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