Which of the Following Situations Is Most Likely to Generate

question 83

Multiple Choice

Which of the following situations is most likely to generate the largest output effect from a decrease in the price of one of a firm's inputs?

• A) The demand for a firm's product is inelastic.
• B) The demand for a firm's product is elastic.
• C) The inputs used in production are highly substitutable.
• D) The inputs used in production are highly complementary.

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Definitions:

Deltoid

A large, triangular-shaped muscle that covers the glenohumeral joint and gives the shoulder its rounded shape, responsible for arm abduction.

Pronator Teres

A muscle in the forearm that helps rotate the arm inward and bend the forearm at the elbow.

Subscapularis

A muscle in the shoulder that is part of the rotator cuff, responsible for medially rotating the arm.

Brachialis

A muscle in the upper arm that flexes the elbow joint, positioned beneath the biceps.