The Elasticity of Demand for a Factor Is Lower

question 75

Multiple Choice

The elasticity of demand for a factor is lower,

• A)the higher the elasticity of demand for the product the factor helps to produce.
• B)the higher the factor cost-total cost ratio.
• C)the fewer substitutes for the factor.
• D)a and c
• E)all of the above

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Definitions:

Supply Chain

The network of all entities involved in producing and delivering a product or service, from raw materials to the end consumer, critical for operational efficiency.

Seaports

Maritime facilities that include harbors, docks, and terminals which accommodate sea-going vessels for the purpose of transferring goods and passengers to and from land.

Airports

Complexes that facilitate air transport, including runways, terminals, and support services for passengers and cargo.

Rail

A mode of transport that uses trains and railway tracks to move goods and passengers from one location to another.