Cork is harvested from the bark of cork oak trees, which are grown primarily in Mediterranean nations with a warm, dry climate: Portugal, Spain, and Morocco. It takes approximately 25 years after planting for a cork oak tree to yield its first harvest, and the bark can only be stripped once every nine years thereafter. Furthermore, recent severe droughts in North Africa have damaged many established cork forests, reducing potential yields.
This information shows that the supply of cork is always price inelastic. Do you agree with this statement? Give reasons for your answer.
