Final answer:
Cynthia's wheat likely has inelastic demand, meaning the demand for her wheat changes less than proportionally to price changes. It is not perfectly inelastic, as there would be some response if prices change significantly.option D is correct answer.
Step-by-step explanation:
The question is asking to determine the type of demand elasticity for the wheat produced by Cynthia, an Oklahoma wheat farmer. The key concept here is understanding the different categories of elasticity, which include: elastic, inelastic, and unitary elasticity. These terms describe how the quantity demanded or supplied responds to changes in price.
Elastic demand or supply indicates that the elasticity is greater than one, showing a high responsiveness to price changes. Inelastic demand or supply has an elasticity less than one, indicating low responsiveness to price changes. Unitary elasticity means that the demand or supply responds proportionally to price changes.
If we consider the nature of wheat as a commodity and staple food item, it generally has fewer substitutes and is a necessity, leading to a lower responsiveness to price changes. Therefore, Cynthia's wheat is likely to have an inelastic demand. However, it is not likely to be perfectly inelastic, as there would still be some response to significant price changes. Hence, the answer would be D. inelastic but not perfectly inelastic.