As with the product market, a manager must not only know the direction of a change in demand but the magnitude of the change. That is, the manager must know how much to alter a resource's use if its price changes.

;Determinants of PERDThe price elasticity of resource demand is the percentage change in the demand for a resource in response to a 1% change in the price of the resource. PERD for a resource depends on:

:*The PED of the product that the input is used to produce - The higher the PED for the product, the higher

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