An increase in demand for resources specific to an industry will cause their earnings to _____ because those resources cannot be released from other industries.
A) fall
B) rise by the same rate as for all resources
C) rise disproportionally
D) fall disproportionally

Question

Quizplus · Accepted Answer

An increase in demand for resources specific to an industry will cause their earnings to rise disproportionally because those resources cannot be released from other industries, and thus the demand for those resources exceeds the supply leading to an increase in their earnings.

An Increase in Demand for Resources Specific to an Industry