The Demand for an Input Will Be More Inelastic When

question 277

Multiple Choice

The demand for an input will be more inelastic when

• A) the demand for the product being produced is elastic.
• B) the cost of the input is a relatively large percentage of total production costs.
• C) the time period being considered is relatively long.
• D) it is difficult to substitute other inputs for this input.

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Definitions:

Loyal

The quality of being faithful or devoted to a person, country, group, or cause.

Stockholders

Individuals or entities that own shares of stock in a corporation, making them partial owners of the company.

Marginal Efficiency

The rate of return on an investment that is additional or marginal to the current level of investment.

Capital

Assets or resources, such as machinery, buildings, or money, that can be used to produce goods and services and generate wealth.