The Price Elasticity of Demand for a Variable Input Will

question 137

Multiple Choice

The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT

• A) the greater the price elasticity of demand for the final product.
• B) the easier it is for a particular variable input to be substituted for by other inputs.
• C) the larger the proportion of total costs accounted for by a particular variable input.
• D) the shorter the time period being considered.

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Definitions:

Iris

Muscular ring that surrounds the pupil and regulates the passage of light through this opening.

Pupil

Opening in the center of the iris of the vertebrate eye.

Retina

The light-sensitive layer of tissue at the back of the inner eye, which converts light images into electrical signals sent to the brain.

Lens

An optical device capable of converging or diverging light, or a transparent structure in the eye which focuses light onto the retina to facilitate vision.