The demand for a resource rises as
A. its productivity rises and the relative prices of substitutable resources rise.
B. its productivity rises and prices of substitutable resources fall.
C. its productivity falls and the relative prices of substitutable resources fall.
D. its productivity falls and prices of substitutable resources fall.
A. its productivity rises and the relative prices of substitutable resources rise.
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An example of a government-imposed barrier to entry gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented. This entry barrier is known as
A) a copyright. B) an exclusive marketing agreement. C) a patent. D) a tariff.
The graphs above show the production possibilities curves for the U.S. and Canada, which both produce cars and wheat. Based on the graphs above, which of the following is true?
A) The opportunity cost of a car in the U.S. is 1 unit of wheat. B) The opportunity cost of a car in the U.S. is 5 units of wheat. C) The opportunity cost of a car in Canada is 1/2 unit of wheat. D) The opportunity cost of a car in Canada is 2 units of wheat.