Other things being equal,the demand for a factor of production will be less elastic if the demand for the final product it produces is:
A) elastic.
B) inelastic.
C) unitary elastic.
D) perfectly elastic.

Question

Quizplus · Accepted Answer

If the demand for the final product is inelastic (meaning consumers are not very responsive to changes in price), the producer can charge a higher price for the final product and still sell a similar quantity. As a result, they are more willing to pay a higher price for the factor of production needed to produce the product, making the demand for the factor less elastic.

Other Things Being Equal,the Demand for a Factor of Production