Asked by
megan eldridge
on Nov 26, 2024
Verified
Which would result in a decrease in the elasticity of demand for a particular resource?
A) a decrease in the rate at which the marginal product of that resource declines
B) an increase in the elasticity of demand for the product that the resource helps to produce
C) a decrease in the percentage of the firm's total costs accounted for by the resource
D) an increase in the substitutability of other resources for the particular resource
Elasticity of Demand
A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating sensitivity.
Marginal Product
The increase in output that results from adding one more unit of a specific input, while keeping other inputs constant.
Substitutability
The degree to which one good can be replaced by another in consumption or production without affecting consumer satisfaction or output.
- Analyze the impact of substitutes on the elasticity of demand for resources.
Verified Answer
BP
Learning Objectives
- Analyze the impact of substitutes on the elasticity of demand for resources.