When the price of a resource goes up and firms seek other suitable resources, this is called the
a. substitution in production effect.
b. substitution in demand effect.
c. elasticity effect.
d. inelasticity effect.
A
You might also like to view...
What is the primary reason that the highest quintile's share of the national income increased very rapidly over the last 20 years?
A. Poor people are lazy and do not want to work. B. All of our jobs have been shipped overseas. C. Tax cuts on the property owners and high income citizens. D. High cost of health care.
The profit effect occurs because, in the short run, resource costs typically do not increase as rapidly as the price of goods and services.
Answer the following statement true (T) or false (F)
If the first worker produces five custom picture frames a day, and the second worker produces five additional custom picture frames a day, it is clear that diminishing marginal returns have not yet set in.
Answer the following statement true (T) or false (F)
Demand factor:
What will be an ideal response?