If Small Changes in Incentives Can Induce a Factor to Shift

question 116

Multiple Choice

If small changes in incentives can induce a factor to shift between alternative uses,we say that the factor is

• A)mobile.
• B)inelastic.
• C)flighty.
• D)efficient.
• E)declining.

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Definitions:

High Demand

Refers to a situation where the need or desire for a product or service exceeds the available supply within the market.

Low Demand

A situation where the desire or market requirement for a product or service is below average or expected levels.

Transportation Costs

The expenses involved in moving goods from one location to another, including fuel, labor, and maintenance of transportation vehicles.

Aggregation

The process of combining multiple units or data points into a single entity or dataset for analysis or reporting purposes.