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#19 OMake le Da, OIe pollcy declslons for their organization O Bear the risks in

ID: 1117911 • Letter: #

Question

#19

OMake le Da, OIe pollcy declslons for their organization O Bear the risks involved in introducing new products or production innovations Get hired as a top executive in established corporations QUESTION 19 A change in a factor's price will have a greater effect on the quantity of the factor demanded the: O Smaller the change in the factor's price o smaller the factor's share of total cost of production O More elastic is the demand for the product the factor helps to make O More inelastic is the demand for the product the factor helps to make QUESTION 20 Featherbedding refers to: a situation in which a union forces an employer to hire union workers in preference to nonunion work the requirement that unneeded workers be retained on a job.

Explanation / Answer

Ans:

More elastic is the demand for the product the factor helps to make.

More elastic demand means the change in demand is greater than the change in price. In this case if price of factor is decreased, which will decrease the product price and since the demand is elastic for the product the increase in demand is greater than the decrease in price. Hence the it will have a greater effect on the quantity of the factor demanded.