The demand for a resource depends primarily on
A) the supply of that resource.
B) the demand for the product or service that it helps produce.
C) the price of that input.
D) the elasticity of supply of substitute inputs.

Question

Quizplus · Accepted Answer

The demand for a resource is primarily dependent on the demand for the product or service that the resource helps produce. As the demand for the product or service increases, the demand for the resource used in production also increases. Therefore, the demand for a resource is derived from the demand for the final product or service.

The Demand for a Resource Depends Primarily on