Asked by Brycen Cluster on May 02, 2024
Verified
Elasticity of resource demand is measured by the:
A) absolute change in resource quantity demanded divided by the absolute change in resource price.
B) percentage change in resource quantity demanded divided by the percentage change in resource price.
C) absolute change in resource price divided by the absolute change in resource quantity demanded.
D) percentage change in resource price divided by the percentage change in resource quantity demanded.
Elasticity
A measure of the responsiveness of demand or supply to changes in price, income, or other economic factors.
Resource Demand
The total amount of resources (such as labor, capital, and materials) that producers require to produce goods and services at various price levels.
- Grasp the concept of elasticity of resource demand and its calculation.
Verified Answer
JC
Jalyn CredleMay 07, 2024
Final Answer :
B
Explanation :
Elasticity of resource demand is measured by the percentage change in resource quantity demanded divided by the percentage change in resource price. This measures the responsiveness of the quantity demanded to changes in the price of a resource.
Learning Objectives
- Grasp the concept of elasticity of resource demand and its calculation.