[Economics] The elasticity of demand for a factor is lower, A. the higher the elasticity of demand for th

Question

The elasticity of demand for a factor is lower,

A. the higher the elasticity of demand for the product the factor helps to produce.

B. the higher the factor cost-total cost ratio.

C. the fewer substitutes for the factor.

D. a and c

E. all of the above

what the h**l do these mean even...

thanks for your help!

71

Answer 1

C. the fewer substitutes for the factor.

"B" is false, so "E" is false too

"A" is false because for competetive product markets - factor markets are more elastic - so "D" is false too.