Other things constant, if the demand for a product is inelastic, the demand for a resource used as an input will tend to be
A) inelastic as well.
B) basically elastic.
C) of unitary elasticity.
D) the inverse of the elasticity coefficient of the product.

Question

Quizplus · Accepted Answer

If the demand for a product is inelastic, it means that a change in price will not have a significant impact on the quantity demanded. Therefore, the demand for the resource used as an input will also be inelastic because producers will still need the same amount of the resource to produce the same quantity of the product.

Other Things Constant, If the Demand for a Product Is