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.
D
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The relationship between the price of a good and the quantity people are willing and able to purchase is:
A) supply. B) demand. C) equilibrium. D) disequilibrium.
Suppose that Gamma is an advanced industrial country and Omega is a developing nation. Omega will gain the most from having some of its people emigrate to Gamma if:
A. Omega is currently experiencing full employment. B. the most skilled workers emigrate. C. Omega currently suffers from high unemployment and the unemployed emigrate. D. the costs to emigrate to Gamma are high.