Question

The demand for a resource depends primarily on: Question 20 options: A) the elasticity of supply of substitute inputs. B) the price of that input. C) the supply of that resource. D) the demand for the product or service that it helps produce.

Answer 1

Answer:

(D) the demand for the product or service that it helps produce

Explanation:

A resource and the product or service that it helps produce (the final product) are complementary goods as an increased usage (demand) of the final product will naturally translate to an increased demand for the resource so as to produce more of the final product which is in high demand.