If the price of a resource falls,other things constant,the _____
A)demand for the final product produced by the resource will decrease.
B)demand for a substitute product will increase.
C)demand for a substitute resource will fall.
D)supply of that resource will rise.
E)supply of a substitute resource will fall.

Question

Quizplus · Accepted Answer

When the price of a resource falls, it becomes cheaper relative to its substitutes, making producers more inclined to use it over the substitute resources. This decreases the demand for substitute resources.

If the Price of a Resource Falls,other Things Constant,the _____