As the relative price paid to a resource in a particular use rises,
A)resources will be drawn from lower-valued uses to higher-valued uses
B)resources will be drawn from higher-valued uses to lower-valued uses
C)resources will generally remain where they are currently employed
D)the supply of that resource will shift to the right
E)the supply of that resource will shift to the left

Question

Quizplus · Accepted Answer

As the relative price paid to a resource in a particular use rises, it becomes more profitable to use that resource in that particular use. This means that resources in other uses that are less profitable will be drawn away to the more profitable use, shifting them from lower-valued uses to higher-valued uses. Therefore, choice A is the correct answer.

As the Relative Price Paid to a Resource in a Particular