The Derived Demand for a Factor Is More Elastic The

question 64

Multiple Choice

The derived demand for a factor is more elastic the:

• A)more inelastic the demand for the product using the factor.
• B)smaller the technical possibilities of substituting another factor for this factor.
• C)more inelastic the supply of jointly used factors.
• D)larger the portion of the cost of this factor in the total cost of the product.
• E)greater the tendency of the industry using the factor to hold product price constant when faced with an increase in factor cost.

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Definitions:

Sympathetic

Characterized by feelings of compassion or understanding towards the situations of others.

Nervous System

The body’s communication network that utilizes neural cells to transmit information, coordinating voluntary and involuntary actions and transmitting signals between different parts of the body.

Parietal Lobe

A region of the cerebral cortex that processes sensory information such as touch, temperature, and pain.

Wernicke's Aphasia

A language disorder that affects the ability to understand spoken language, often resulting from damage to the Wernicke's area of the brain.