The More Elastic the Demand for a Final Product

question 179

Multiple Choice

The more elastic the demand for a final product,

• A) the more elastic will be the demand for the productive resources used.
• B) the less elastic the supply of resources used in producing the product.
• C) the less firms will reduce their usage of resources when the price of the resources increases.
• D) the higher the MRP of the resources used to produce the product.

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Definitions:

Creditors

Individuals or entities that have provided goods, services, or loans to another entity, to which the latter is obliged to repay.

Purchases

Transactions involving the acquisition of goods or services in exchange for payment, contributing to a business's inventory or operational needs.

Trial Balance

A financial worksheet that gathers the balances from all accounts into columns of debits and credits, verifying the mathematical accuracy of a company's accounting records.

Ledger

Definition: A book or database in which financial transactions are summarized and categorized to show account balances.