Asked by Desiree Hunter on Jun 03, 2024
Verified
The less the elasticity of product demand, the greater the elasticity of resource demand.
Elasticity of Product Demand
A measure of the responsiveness of the quantity demanded of a product to changes in its price.
Elasticity of Resource Demand
The measure of how much the quantity demanded of a resource changes in response to a change in its price.
- Gain an understanding of the relationship between product demand elasticity and its effect on labor demand, including how it impacts the demand elasticity for labor.
Verified Answer
RH
Ricardo HepburnJun 06, 2024
Final Answer :
False
Explanation :
The elasticity of resource demand is directly related to the elasticity of product demand; if the product demand is inelastic, the resource demand tends to be more inelastic as well, not more elastic.
Learning Objectives
- Gain an understanding of the relationship between product demand elasticity and its effect on labor demand, including how it impacts the demand elasticity for labor.
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