An Increase in the Price of a Resource Would Cause

question 38

Multiple Choice

An increase in the price of a resource would cause

• A) producers to substitute other inputs for the resource.
• B) consumers to increase consumption of the goods that increase in price as the result of the higher resource price.
• C) an increase in the demand for products that use the resource intensely.
• D) a reduction in the price of goods produced with the resource.

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Definitions:

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