The Input Demand Curve of an Industry Is Relatively Inelastic

question 75

Multiple Choice

The input demand curve of an industry is relatively inelastic when:

• A)the demand for the final product is relatively elastic.
• B)the marginal rate of technical substitution is lower.
• C)the supply curves of other inputs is relatively inelastic.
• D)price of the input is higher than the price of other inputs.

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Definitions:

Tornado Chart

A visual representation used in sensitivity analysis to compare the relative importance of variables.

Decision Table

A tabular method for representing and analyzing logical relationships between conditions and actions, used in decision-making and systems analysis.

Decision Variable

A variable in optimization or decision-making models whose value is subject to choice within a set of permissible values.

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used in physical and mathematical problems.