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What Are the Two Key Factors That Determine the Strength

question 108

Essay

What are the two key factors that determine the strength of demand for a resource? How do they determine whether a resource is in high demand or low demand?


Definitions:

Accounting Rate

Typically referred to as the rate of return, it measures the profitability of investments or projects based on accounting information, rather than the current market value.

Limited Economic Resource

A scarcity or limitation of resources that possess utility or value, which restricts their availability for use in production, consumption, or investment.

Mutually Exclusive

Situations or events that cannot occur at the same time, often used in decision-making scenarios where the choice of one option precludes the selection of another.

Independent

Characterized by freedom from outside control or influence; self-governing.

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