As the price of a resource increases,_____
A)the demand for the final product produced by the resource decreases.
B)the quantity demanded of that resource decreases.
C)the supply of that resource increases.
D)producers are more willing and able to hire that resource.
E)producers are less willing and able to hire that resource.

Question

Quizplus · Accepted Answer

As the price of a resource increases, producers become less willing and able to hire that resource as it becomes more expensive to use in production. This results in a decrease in the quantity supplied of the resource. Additionally, higher prices may encourage consumers to seek substitutes or reduce their demand for the final product, resulting in a decrease in demand for the resource. However, the supply of the resource itself is not affected by the price but rather by factors such as technology, input prices, and production costs.

As the Price of a Resource Increases,_____