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:

Merchandise

Products or goods that are bought, sold, or traded within a retail environment.

Long-Term Assets

Assets that a company intends to hold for more than one year, including property, plant, and equipment.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, showing the company's financial condition.

Current Ratio

Current ratio is a financial metric used to evaluate a company's ability to pay off its short-term liabilities with its short-term assets.