The aggregate economic rent received by a productive resource will decrease, ceteris paribus, whenever the
A) demand for the resource increases.
B) price of the resource decreases.
C) demand for the resource decreases.
D) supply curve shifts to the right.

Question

Quizplus · Accepted Answer

When the demand for a resource decreases, the price and quantity demanded for that resource typically fall, leading to a decrease in the aggregate economic rent received by the resource.

The Aggregate Economic Rent Received by a Productive Resource Will