The derived demand for a factor is more elastic the:
A) more inelastic the demand for the product using the factor.
B) smaller the technical possibilities of substituting another factor for this factor.
C) more inelastic the supply of jointly used factors.
D) larger the portion of the cost of this factor in the total cost of the product.
E) greater the tendency of the industry using the factor to hold product price constant when faced with an increase in factor cost.
Correct Answer:
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