Other Things Constant, as the Price of a Resource Increases

question 257

Multiple Choice

Other things constant, as the price of a resource increases,

• A) the quantity of the resource demanded falls.
• B) the quantity of the resource supplied falls.
• C) the price of the product the resource helps to produce falls.
• D) there is less of an incentive for users of the resource to find substitute resources.

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Definitions:

Home-Based Business

A business operated from the owner's home, often requiring minimal capital to start and allowing for flexible work schedules.

Small-Business Designation

A category that identifies a business as being relatively small in size within its industry, according to specific criteria set by governmental agencies or financial institutions.

Government Agencies

Public sector entities established by a government to implement legislation, govern, and administer public policy.