In the long run,a fall in the input price causes less of an increase in factor demand
A)if the increase of product supply affected price.
B)if the market price will decrease too.
C)if the market price remain constant.
D)if the factor demand is more elastic.

Question

Quizplus · Accepted Answer

In the long run, if the market price remains constant, the increase in factor demand due to a fall in input prices will be less pronounced because the output price does not change to incentivize a larger increase in production.

In the Long Run,a Fall in the Input Price Causes