The Price Elasticity of Demand for a Variable Input Will

question 137

Multiple Choice

The price elasticity of demand for a variable input will be more elastic in all the following cases EXCEPT

• A) the greater the price elasticity of demand for the final product.
• B) the easier it is for a particular variable input to be substituted for by other inputs.
• C) the larger the proportion of total costs accounted for by a particular variable input.
• D) the shorter the time period being considered.

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Definitions:

Market

A system or place where buyers and sellers interact to trade goods, services, or assets.

Legally Purchase

Refers to buying goods or services in accordance with the law.

Internet Shopping

The act of purchasing goods or services via the internet through online retailers and marketplaces.

Competitive Market

A market structure characterized by many buyers and sellers, such that no single entity can dictate prices or terms of sale.