If the price of a resource falls, other things constant, the _____.
A)demand for the final product produced by the resource will increase
B)demand for a substitute product will increase
C)demand for a substitute resource will fall
D)supply of that resource will rise
E)supply of a substitute resource will also rise

Question

​If the price of a resource falls, other things constant, the _____.
A)demand for the final product produced by the resource will increase
B)demand for a substitute product will increase
C)demand for a substitute resource will fall
D)supply of that resource will rise
E)supply of a substitute resource will also rise

Quizplus · Accepted Answer

When the price of a resource falls, the demand for a substitute resource will fall because the cheaper resource becomes more attractive to use.

​If the Price of a Resource Falls, Other Things Constant

If the Price of a Resource Falls, Other Things Constant