The Demand for a Resource Is Generally More

question 66

Multiple Choice

The demand for a resource is generally more

• A) elastic in the short run because it takes time to alter the ratio of resources used in many production processes.
• B) inelastic in the short run because it takes time to alter the ratio of resources used in many production processes.
• C) elastic in the short run because an increase in the price of the resource may not be expected to last.
• D) inelastic in the short run because once resource suppliers find out they can charge a higher price, they will do so in the long run.

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Definitions:

Price-elastic

Descriptive of a product or service for which demand significantly increases or decreases as the price changes.

Health Care

The organized provision of medical services to individuals or communities to maintain or improve their health.

Household Budget

A budgeting strategy that distributes anticipated personal earnings into categories for spending, saving, and paying off debts.

Price Elasticity

An assessment of the sensitivity of the demand for an item to shifts in its cost.