Firms Must Be Sensitive to Environmental Factors When Relocating to a New

question 9

Multiple Choice

Firms must be sensitive to environmental factors when relocating to a new area. Some ways that firms express this sensitivity are by participating in all but which of the following activities?

• A) planting trees
• B) performing waste management
• C) practicing organic farming
• D) setting up power lines

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Definitions:

Supply Inelastic

A situation where the quantity supplied of a good is not significantly affected by changes in its price.

Cross Elasticity

A gauge for the reaction in the demand for one item when there's a price alteration in another item.

Cross Elasticity

The extent to which the demand for a certain good alters in response to price changes of another good.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increased demand for the other.