Which Would Result in a Decrease in the Elasticity of Demand

question 143

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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Definitions:

Complex Reasoning

The cognitive process involving the analysis, evaluation, and synthesis of information to solve problems or make decisions.

Working Memory Capacity

The amount of information that an individual can hold in mind and manipulate for a short period.

Executive Control System

The set of cognitive processes and mental skills that help an individual plan, monitor, and successfully execute their goals.

Cognitive Abilities

Mental capabilities including reasoning, problem solving, planning, abstract thinking, complex idea comprehension, learning quickly, and learning from experience.