The Derived Demand Curve for a Resource Is Downward Sloping

question 40

Multiple Choice

The derived demand curve for a resource is downward sloping because

• A) the demand for products that utilize the resource is directly related to the price of the resource.
• B) the marginal productivity of resources will decline as their price increases.
• C) as the price of a resource rises, other resources will be less desirable than the higher priced resource.
• D) other resources will be substituted for a resource that increases in price.

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