If the price of a resource increases, other things constant, less of that resource will be hired because
A)producers will substitute away from that resource
B)producers fear starting a trend toward higher resource prices
C)the demand curve for the product will shift to the left
D)highly paid resources don't produce as much
E)it makes other resources look expensive as well

Question

Quizplus · Accepted Answer

Producers will substitute away from that resource and hire more of other resources that have become relatively cheaper than the now expensive resource. This will result in a decrease in the demand for the expensive resource and ultimately lead to less of it being hired.

If the Price of a Resource Increases, Other Things Constant