The Derived Demand Curve for a Good Component Will Be

question 2

Multiple Choice

The derived demand curve for a good component will be more inelastic

• A)the larger is the fraction of total cost going to this component.
• B)the more inelastic is the demand curve for the final good.
• C)the more elastic are the supply curves of cooperating factors.
• D)the less essential is the component in question.

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Definitions:

Decimal Equivalent

A decimal number that represents the same value as a given fraction or percentage.

Percent Equivalent

The fractional amount expressed as a part of one hundred.

Compound Interest

This form of interest computation involves calculating interest on both the initial principal amount and any interest that has accrued in the past periods on a loan or deposit.

Percent Equivalent

The numeric representation of a ratio or fraction as a part of 100.