Asked by
Shahd Ahmed
on Nov 26, 2024
Verified
Resource X has many close substitutes, whereas resource Y has no close substitutes. Other things equal, we would expect
A) the demand for resource Y to be more elastic than the demand for resource X.
B) resources X and Y to be close substitutes.
C) resource X to be more expensive than resource Y.
D) the demand for resource X to be more elastic than the demand for resource Y.
Close Substitutes
Products or services that can easily replace each other in consumption, showing a high level of interchangeability.
Resource Demand
The desire for resources (such as labor, capital, and natural resources) based on their contribution to the production process, influenced by factors like technological change and product demand.
- Determine the determinants impacting the flexibility of resource demand, including alternative options and the percentage of overall costs.
Verified Answer
JA
Learning Objectives
- Determine the determinants impacting the flexibility of resource demand, including alternative options and the percentage of overall costs.