Asked by Arvind Sethi on May 22, 2024
Verified
If two resources are highly substitutable for one another:
A) a decrease in the price of one will increase unit costs of production.
B) an increase in the price of one will increase the demand for the other.
C) an increase in the price of one will reduce the demand for the other.
D) a decrease in the price of one will increase the demand for the other.
Highly Substitutable
Referring to goods or services that can easily replace each other in consumption or use.
Unit Costs
The cost incurred by a company to produce, store, and sell one unit of a particular product or service.
Demand
The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.
- Gain insight into the repercussions of technological evolution and replacement on workforce requirements.
Verified Answer
SD
Sheik DabohMay 27, 2024
Final Answer :
B
Explanation :
When two resources are highly substitutable, an increase in the price of one makes the other more attractive, thus increasing its demand.
Learning Objectives
- Gain insight into the repercussions of technological evolution and replacement on workforce requirements.