Which of the Following Would Cause the Price Elasticity of Demand

question 191

Multiple Choice

Which of the following would cause the price elasticity of demand for a variable input to be greater?

• A) the smaller the price elasticity of demand for the final product
• B) the longer the time period being considered
• C) the smaller the proportion of total costs accounted for by the variable input
• D) the harder it is for a variable input to be substituted for by other inputs

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Definitions:

Primary Group

A small social group whose members share close, personal, enduring relationships, characterized by strong emotional ties, warmth, and intimacy.

Example

A representative case or instance used to illustrate a rule, method, or condition; often used for clarification.

Stanley Milgram

A psychologist best known for his groundbreaking research on obedience to authority, highlighting the powerful influence of authority figures on individual actions.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, values, or expectations.