If Two Resources Are Highly Substitutable for One Another

question 113

Multiple Choice

If two resources are highly substitutable for one another,

• A) a decrease in the price of one will increase unit costs of production.
• B) an increase in the price of one will increase the demand for the other.
• C) an increase in the price of one will reduce the demand for the other.
• D) a decrease in the price of one will increase the demand for the other.

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Definitions:

Credit Cards

Means of access to preapproved lines of credit granted by a bank or finance company.

Debit Cards

Bank cards that allow users to make transactions by deducting money directly from their checking account.

Government Securities

Financial instruments issued by a government to finance its public projects, which include bonds, treasury bills, and notes.