Changes in the demand for an industry's output are felt most by those factors that

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Factors that are inelastically supplied are not easily substituted or replaced, so any increase or decrease in demand for the industry's output has a greater impact on these factors. They are often essential or unique factors such as specialized machinery, skilled labor, or rare resources. As a result, these factors are more sensitive to changes in the industry's demand and tend to experience the most significant effects.

Changes in the Demand for an Industry's Output Are Felt