The demand for an input will be more inelastic when
A) the demand for the product being produced is elastic.
B) the cost of the input is a relatively large percentage of total production costs.
C) the time period being considered is relatively long.
D) it is difficult to substitute other inputs for this input.
Answer: D
You might also like to view...
How does an increase in government purchases financed by an increase in the deficit affect exchange rates? Support your answer with graphs of the loanable funds market and the foreign exchange market
What will be an ideal response?
If the demand for British pounds decreases,
a. the equilibrium price of the pound will increase b. the equilibrium price of the pound will decrease c. the equilibrium price of the pound will not change d. the equilibrium price of the pound will change, but we need additional information to predict the direction of the change e. no one can predict what will happen