Microeconomics 18th Edition by Campbell McConnell, Stanley Brue, Sean Flynn

Exercise 11

(Key Question) What factors determine the elasticity of resource demand What effect will each of the following have on the elasticity or location of the demand for resource C, which is being used to produce commodity X Where there is any uncertainty as to the outcome, specify the causes of the uncertainty.
a. An increase in the demand for product X.
b. An increase in the price of substitute resource D.
c. An increase in the number of resources substitutable for C in producing X.
d. A technological improvement in the capital equipment with which resource C is combined.
e. A fall in the price of complementary resource E.
f. A decline in the elasticity of demand for product X due to a decline in the competitiveness of product market X.