Asked by
Katelyn Peoples
on Dec 12, 2024Verified
Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
A) highly inelastic.
B) of unitary elasticity.
C) a curve sloping upward to the right.
D) quite elastic as well.
Elastic Demand
Elastic demand indicates a scenario where a slight change in price leads to a substantial shift in the volume of the product demanded by consumers.
Resource Utilization
The efficient and effective use of resources, such as labor, capital, and materials, to produce goods and services.
Final Product
The end item or output that is ready for sale to consumers, having passed through all stages of production.
- Distinguish between short-run and long-run elasticity in demand for resources.
Verified Answer
MT
Learning Objectives
- Distinguish between short-run and long-run elasticity in demand for resources.