An increase in the price of a resource would cause
A) producers to substitute other inputs for the resource.
B) consumers to increase consumption of the goods that increase in price as the result of the higher resource price.
C) an increase in the demand for products that use the resource intensely.
D) a reduction in the price of goods produced with the resource.

Question

Quizplus · Accepted Answer

An increase in the price of a resource typically leads producers to substitute other, less expensive inputs for the resource to minimize costs.

An Increase in the Price of a Resource Would Cause