Economics 20th Edition by Campbell McConnell ,Stanley Brue ,Sean Flynn

Exercise 3

What factors determine the elasticity of resource demand? What effect will each of the folhave on the elasticity or the of the demand for resource C, which is being used to produce commodity X? Where there is any uncertainty as to the outcome, specify the causes of that uncertainty. L04
a. An increase in the demand for product X.
b. An increase in the price of substitute resource D.
c. An increase in the number of resources substitutable for C in producing X.
d. A technoimprovement in the capital equipment with which resource C is combined.
e. A fall in the price of complementary resource E.
f. A decline in the elasticity of demand for product X due to a decline in the competitiveness of product market X.