An increase in demand for resources fixed or specific to
An industry will cause their earnings _____ because
Those resources cannot be released from other
Industries.
A)to fall
B)to rise by the same rate as for all resources
C)to rise disproportionally
D)to fall disproportionally

Question

Quizplus · Accepted Answer

When the demand for specific resources increases in an industry, their earnings will rise disproportionately because these resources cannot be easily released from other industries. As a result, the industry will have to pay more to ensure a sufficient supply of those resources, leading to a disproportionate increase in their earnings.

An Increase in Demand for Resources Fixed or Specific to