A decrease in the price of a resource would cause
A) producers to substitute other inputs for the resource.
B) the cost of products made from the resource to fall.
C) producers to use more of the resource.
D) none of the above.
E) both b and c above.

Question

Quizplus · Accepted Answer

A decrease in the price of a resource typically leads to a reduction in the cost of products made from that resource (B) and encourages producers to use more of the resource due to its lower cost (C).

A Decrease in the Price of a Resource Would Cause