Question

An increase in demand for resources specific to an industry will cause their earnings to _____ because the resources cannot be released from other industries. Group of answer choices

Answer 1

Answer:

rise disproportionately

Explanation:

An increase in the quantity demanded of a good will increase the price of the good but should also increase the quantity supplied. But if the company cannot obtain resources because they are being used by other industries, then their supply will be limited. that will cause the price of the good to rise disproportionately along with the earnings of the company.