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Which of the Following Would Cause the Price Elasticity of Demand

Question 209

Multiple Choice

Which of the following would cause the price elasticity of demand for a variable input to be greater?


A) the smaller the price elasticity of demand for the final product
B) the longer the time period being considered
C) the smaller the proportion of total costs accounted for by the variable input
D) the harder it is for a variable input to be substituted for by other inputs

Correct Answer:

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