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The Derived Demand Curve for a Resource Is Downward Sloping

Question 40

Multiple Choice

The derived demand curve for a resource is downward sloping because


A) the demand for products that utilize the resource is directly related to the price of the resource.
B) the marginal productivity of resources will decline as their price increases.
C) as the price of a resource rises, other resources will be less desirable than the higher priced resource.
D) other resources will be substituted for a resource that increases in price.

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