The more inelastic the demand for a resource, the
A) less elastic its marginal revenue product curve.
B) more elastic its marginal revenue product curve.
C) greater the potential for resource substitution.
D) greater the productivity of the resource.

Question

Quizplus · Accepted Answer

When the demand for a resource is inelastic, a change in the price of the resource will result in a relatively small change in quantity demanded. This means that the marginal revenue product curve will be less elastic, as a change in price will not greatly affect the quantity demanded or the revenue generated.

The More Inelastic the Demand for a Resource, the