Other things constant, if the demand for a final product is quite elastic, the demand for a resource used to produce the product will tend to be
A) highly inelastic.
B) of unitary elasticity.
C) a curve sloping upward to the right.
D) quite elastic as well.

Question

Quizplus · Accepted Answer

If the demand for a final product is elastic, the demand for a resource used to produce that product will also be elastic because changes in the price of the resource will significantly affect the cost of production and, consequently, the price and demand for the final product.

Other Things Constant, If the Demand for a Final Product