Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
a. highly inelastic.
b. of unitary elasticity.
c. a curve sloping upward to the right.
d. quite elastic as well.
D
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Refer to Figure 10.1. If only one light is installed, the people who were not responsible for the light being installed each receive a payoff of
A) 2. B) 4. C) 6. D) 8.
Workers and firms both expect that prices will be 2.5% higher next year than they are this year. As a result
A) workers will be willing to take lower wages next year, but not lower than a 2.5 percent decrease. B) aggregate demand will increase by 2.5%. C) the purchasing power of wages will rise if wages increase by 2.5%. D) the short-run aggregate supply curve will shift to the left as wages increase.
In the Monetarist view, the aggregate demand curve will be unstable when __________ is __________
A) exogenous investment; stable B) the money supply; stable C) exogenous investment; varies D) money supply; varies
Which of the following best describes the history of the U.S. price level from 1970 to 2008?
a. The price level increased during the 1970s and 1980s, but decreased during the 1990s. b. The price level increased during the 1970s but decreased during the 1980s and 1990s. c. The price level decreased over the whole period. d. The price level increased over the whole period. e. The price level increased during the 1970s but decreased during the 1980s, and 1990s.