Conditional input demand curves always slope down, but unconditional input demand curves can slope up.

Question

Quizplus · Accepted Answer

Unconditional input demand curves can slope up because they represent the relationship between the quantity demanded of an input and its price, holding all other factors constant. In contrast, conditional input demand curves hold the output or production level constant, and therefore always slope down as the firm will demand less of an input if its price increases.

Conditional Input Demand Curves Always Slope Down, but Unconditional Input