Asked by
Darrence Pelicano
on Dec 12, 2024Verified
An increase in the price of a resource would cause
A) producers to substitute other inputs for the resource.
B) consumers to increase consumption of the goods that increase in price as the result of the higher resource price.
C) an increase in the demand for products that use the resource intensely.
D) a reduction in the price of goods produced with the resource.
Price of a Resource
The monetary value assigned to a raw material, energy, or other fundamental inputs used in the production of goods and services.
Substitute Inputs
Alternatives that can be used in the production process if the original inputs become too expensive or unavailable.
Consumers
Individuals or groups who use goods and services to satisfy their personal needs and desires.
- Acknowledge the idea of replacing resources in reaction to fluctuations in their prices.
Verified Answer
MP
Learning Objectives
- Acknowledge the idea of replacing resources in reaction to fluctuations in their prices.