Correct answer = C
"Elasticity," Michael Parkin
2008 Modular Level I, Vol. 2, pp. 19-21
Study Session 4-13-a
calculate and interpret the elasticities of demand (price elasticity, cross elasticity, income elasticity) and the elasticity of supply, and discuss the factors that influence each measure
A decrease in the price of a substitute resource would induce producers to use the substitute resource, reducing demand for the resource in question. An increase in the price of a complementary resource would decrease demand for both resources.
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发表于 2008-5-20 15:16
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