?

AP® Microeconomics

Free Version

Upgrade subject to access all content

Moderate

Elasticity of Demand for Resources

APMICR-XXILNB

Which of the following is MOST likely to make the demand for a resource relatively inelastic?

A

The cost of the resource makes up a small portion of overall production costs.

B

The cost of the resource makes up a large portion of overall production costs.

C

The resource has a large number of substitutes.

D

The demand for the product that the resource produces is relatively elastic.

E

The product the resource is used to produce is a luxury.