Question

A fall in the demand for a resource to produce some product (X) will

all of these answers are correct.

reduce the value of that resource.

raise the cost of using the resource for an alternative product (Y).

none of these answers are correct.

reduce the use of that resource in alternative lower valued products.

Answer 1

A fall in demand for the resourcedecrease in the demand as a result of which the demand curve shift to left with which the equilibrium price decreases and equilibrium quantity also decreases when did the equilibrium price decreases this means there is a decrease in the value of the resource and therefore

(b) reduce the value of that resource is the answer to this question

Because nothing is mentioned about the alternative resource Y and there can be a chance that the lower value products can have increased demand as a result of which date price increases and the value of that resource can increase

Therefore (a,c,d,e) are wrong.