Since the Demand for a Resource Depends on the Demand

question 27

Multiple Choice

Since the demand for a resource depends on the demand for goods that the resource helps produce, the demand for each resource is

• A) an elastic demand.
• B) an independent demand.
• C) a derived demand.
• D) inversely related to the marginal productivity of the resource.

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Definitions:

Large Purchases

Transactions involving the acquisition of a substantial volume of goods or services, often resulting in economies of scale or bulk discounts.

Innovative

Relating to the introduction of new ideas, methods, or products.

Demand Elasticity

An indicator of the extent to which the demand for a product or service shifts as a result of variations in its price.

Locking in Customers

Refers to strategies used by companies to retain customers, often through the use of long-term contracts, proprietary technology, or loyalty programs.