Which Would Result in a Decrease in the Elasticity of Demand

question 46

Multiple Choice

Which would result in a decrease in the elasticity of demand for a particular resource?

• A) a decrease in the rate at which the marginal product of that resource declines
• B) an increase in the elasticity of demand for the product that the resource helps to produce
• C) a decrease in the percentage of the firm's total costs accounted for by the resource
• D) an increase in the substitutability of other resources for the particular resource

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Leading Question

A question that suggests the answer or contains the information the examiner is looking to have confirmed, typically disallowed on direct examination.