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Colton Agnew
on Nov 26, 2024

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The elasticity of resource demand measures the

A) responsiveness of workers to changes in wage rates.
B) responsiveness of producers to changes in resource prices.
C) ratio of marginal revenue product to resource price.
D) sensitivity of marginal revenue product to changes in product price.

Elasticity of Resource Demand

A measure of how the quantity demanded of a resource changes in response to a change in price.

Resource Prices

The cost of inputs used in the production of goods and services, such as labor, capital, land, and raw materials.

Marginal Revenue Product

The extra income obtained through the use of an additional unit of a resource, for example, capital or labor.

  • Absorb the understanding of labor demand elasticity and its linkage to wage variances.
  • Identify the factors that affect the elasticity of resource demand, including substitutes and proportion of total costs.
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Daysia DedeauxNov 29, 2024
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