The elasticity of resource demand measures the
A)responsiveness of workers to changes in wage rates.
B)responsiveness of producers to changes in resource prices.
C)ratio of marginal revenue product to resource price.
D)sensitivity of marginal revenue product to changes in product price.

Question

Quizplus · Accepted Answer

The elasticity of resource demand refers to how much the quantity demanded of a resource or input changes in response to a change in its price. This is most directly related to producers' responsiveness to changes in resource prices, as they adjust their demand for inputs based on cost considerations.

The Elasticity of Resource Demand Measures the