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:

Transportation Costs

Expenses associated with moving goods from one location to another within the supply chain.

Chinese Yuan

The official currency of the People’s Republic of China, which is issued by the People's Bank of China.

Labor Dispute

A disagreement between employees and employers over workplace conditions, wages, hours, or other labor-related issues, often leading to negotiations or strikes.

Risk Driver

Factors that contribute to the level of risk in a project or business situation, influencing the probability and impact of potential risks.