The elasticity of resource demand will be greater the
A)smaller the portion of the product's total costs accounted for by the resource.
B)less the elasticity of demand for the product it is producing.
C)easier it is to substitute other resources in production.
D)less the elasticity of resource supply.

Question

Quizplus · Accepted Answer

The elasticity of resource demand is greater when it is easier to substitute other resources in production because this flexibility allows producers to adjust their resource usage in response to price changes, making their demand for any single resource more elastic.

The Elasticity of Resource Demand Will Be Greater the